(Reuters) – Australian aged-care provider Estia Health said on Wednesday it received an improved offer from Bain Capital, implying a total deal consideration of A$826.8 million ($552.05 million).
The company had earlier provided limited access to its books in April for the U.S. investment company in hopes of a sweetened bid.
Under the revised proposal, Bain Capital will offer A$3.20 in cash for every Estia share, which is at a 50% premium to the stock’s closing price on March 21 and up from a previous offer of A$3.00, Estia Health said in a statement.
Additionally, the board is permitted to pay a fully-franked dividend of A$0.12 per share, allowing eligible shareholders to receive up to approximately 5.1 AU cents per share in franking credits.
“Following careful consideration, the Board has determined that it is in the interests of shareholders to progress the Revised Proposal and allow Bain Capital to undertake further due diligence to enable it to provide a binding proposal,” Estia Health said.
The company added that it had urged its shareholders to vote in favour of the offer in the absence of a superior proposal, if Bain Capital is able to come up with a binding offer consistent to the revised bid.
($1 = 1.4977 Australian dollars)
(Reporting by Archishma Iyer in Bengaluru; Editing by Rashmi Aich)
