Aged care homes specialist Estia Health (ASX:EHE) has entered into an agreement with Bain and Co for an $838 million takeover via a scheme of arrangement.
Under the Bain proposal, Estia Health shareholders will receive $3.20 per share in cash, an increase from the original $3 per share offer made in March.
The offer of $3.20 per share represents a significant 50% premium to Estia Health's closing share price of $2.14 on 21 March 2023, prior to Bain Capital's initial proposal.
Estia Health is also permitted to pay fully franked dividends of up to 12 cents per share, allowing eligible shareholders to receive up to 5 cents per share in additional benefits from franking credits.
The Estia Health Board unanimously recommends that shareholders vote in favour of the Scheme, provided there is no superior proposal and subject to an Independent Expert concluding that the Scheme is in the best interests of Estia Health shareholders, as stated in the company's announcement to the ASX on Monday.
Dr. Gary Weiss, Chair of Estia Health, expressed satisfaction with the deal, stating, "We are pleased that Bain Capital has recognised Estia Health's value as a leading Australian aged care operator with a strong reputation for person-centred care."
Dr. Weiss added, "The Estia Health Board is confident about the business's outlook, however, it recognises that the Scheme allows shareholders to realise certain cash value now at an attractive premium."
