Australian aged-care provider Estia Health (EHE.AX) soared as much as 19% on Wednesday after private equity firm Bain Capital sweetened its takeover offer to A$826.8 million ($552.05 million).
Bain's revised proposal, which values Estia shares at A$3.20 each, is a 25.5% premium to the stock's last closing price. The offer is also a 50% premium to the price Bain offered in March.
Estia Health said its board is "minded" to recommend the revised proposal to shareholders. The company added that it will continue to engage with Bain and other potential bidders.
Bain's sweetened offer comes amid growing investor interest in the Australian aged-care sector. The sector is facing a number of challenges, including rising costs and a shortage of staff.
Estia Health is the largest listed aged-care provider in Australia. The company operates 130 facilities across the country and has about 10,000 employees.
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 made a number of successful investments in the Australian market.
The offer from Bain Capital is a positive development for Estia Health shareholders. The revised proposal represents a significant premium to the stock's recent trading price and is likely to be welcomed by investors.
The offer is also a sign of confidence in the Australian aged-care sector. Bain Capital is a well-respected private equity firm with a track record of success in the healthcare sector. The offer suggests that Bain believes there is significant value in Estia Health and that the company is well-positioned to grow in the future.
It remains to be seen whether Bain Capital will be successful in its bid for Estia Health. However, the sweetened offer is a positive development for the company and its shareholders.
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