Australia's Estia Health (EHE.AX) soared as much as 38% on Wednesday after private equity firm Bain Capital sweetened its takeover offer to A$7.00 per share, valuing the aged-care provider at A$552 million ($395.7 million).
The offer, which is a 24% premium to Estia's last closing price, comes after Bain Capital's initial offer of A$5.65 per share was rejected by the company's board in May.
Estia Health said its board would consider the new offer and provide an update in due course.
The sweetened offer comes as the Australian aged-care sector is facing increasing scrutiny over its quality of care and high fees.
In April, the Australian government announced a royal commission into the sector, which is expected to report its findings in October.
Bain Capital is a global private equity firm with over $100 billion in assets under management. The firm has a long history of investing in the healthcare sector and has a strong track record of success.
The acquisition of Estia Health would be Bain Capital's first major investment in the Australian aged-care sector.
The offer is likely to be welcomed by Estia Health's shareholders, who have been frustrated by the company's lack of progress in recent years.
The company has been struggling to improve its quality of care and has been hit by a number of scandals, including allegations of neglect and abuse.
The new offer from Bain Capital would provide Estia Health's shareholders with an opportunity to exit the company at a premium price and would give the company the chance to start afresh under new ownership.
People also ask
⚐ What are the top stocks to invest in right now?☵ What happens to stocks when they're delisted?