Brisbane-based allied health company Healthia (ASX: HLA) has received a takeover offer from Pacific Equity Partners (PEP) that the board has unanimously recommended shareholders accept.
The offer, which represents an 84.6% premium to yesterday’s closing price, is valued at $252 million and falls short of the highs achieved in late 2021.
The transaction will see Harold BidCo, an entity owned by funds advised by PEP, acquire 100% of the company with shareholders entitled to a mix of cash and scrip considerations.
Healthia’s FY23 net profit after tax and amortisation (NPATA) of $6.6 million signifies a 290% improvement on the previous year.
Image: Healthia
However, the group has been on a rollercoaster ride since the pandemic began, and recent performance has been impacted by staff absenteeism due to spikes in COVID and the flu.
Major shareholders, including MA Financial Group (ASX: MAF), Wilson Asset Management, and Regal Funds Management, which have a combined stake of 26.8%, have advised of their intentions to vote in favour of the scheme with the same conditions as the board has advised.
The Healthia board has concluded that the scheme represents a very attractive outcome for shareholders, clinic partners, patients, clinicians, and team members.
The all-cash price at a significant premium to Healthia’s recent share price reflects the inherent value of Healthia’s business operations, national platform, and growth strategy in Australia and New Zealand. Healthia’s clinic class share model forms an important part of the group’s clinic-led business model and clinician retention program, which is supported by Healthia’s head office support team and functions.
Under the transaction, a number of directors and key management personnel will maintain an ongoing equity interest in Healthia, demonstrating their ongoing confidence in the future of this business under PEP ownership. Shareholders will be able to vote on the scheme at a meeting expected to take place in late November.
