By Stuart Condie
SYDNEY–Australian dentistry chain Pacific Smiles rejected a takeover proposal from Genesis Capital but plans to open its books to the private-equity company in the hope of attracting an improved offer.
Pacific Smiles on Thursday said that Genesis’s proposal, which valued its equity at 223.4 million Australian dollars (US$151.1 million), was opportunistic and materially undervalued the company. It said it would offer limited non-exclusive access to its accounts.
The ASX-listed company said that the A$1.40-a-share proposal did not reflect its position as the third-largest dental-service organization in Australia, potential synergies open to any acquirer, or its strong trading momentum.
Pacific Smiles’s patient fees so far in its 2024 fiscal year were up more than 10% on a year earlier. It expects annual underlying earnings before interest, tax, depreciation and amortization of between A$26 million and A$28 million, up by between 7.9% and 16% on fiscal 2023.
Pacific Smiles’s shares were at A$1.195 prior to its announcement of Genesis’s approach. They last traded at A$1.42.
Write to Stuart Condie at [email protected]
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