Pacific Smiles board recommends against Genesis' $207 mln revised offer

U.S.-based private equity firm Genesis, which is the top shareholder of Pacific Smiles with a 19.9% stake, increased its offer for the dental company earlier this week to A$1.9825 per share for all the shares it does not currently hold.

Reuters

Updated On Nov 13, 2024 at 07:38 PM IST

Bengaluru: Australia's Pacific Smiles recommended on Wednesday its shareholders reject Genesis Capital's "best and final" takeover offer of A$316.4 million ($206.74 million), citing valuation concerns.

U.S.-based private equity firm Genesis, which is the top shareholder of Pacific Smiles with a 19.9% stake, increased its offer for the dental company earlier this week to A$1.9825 per share for all the shares it does not currently hold.

The proposal comprises a cash payment of A$1.95 to Pacific Smiles shareholders and a 3.25 Australian cents dividend already paid in late August.

Pacific Smiles said the offer remained "opportunistically timed" and materially below former bidder National Dental Care's (NDC) A$2.05 apiece bid.

Separately, Pacific Smiles said it expected A$31.2 million to A$34.2 million in fiscal 2025 underlying earnings before interest, tax, depreciation and amortisation, compared with A$28.2 million last year.

The dental firm maintained that its business continued to see growth momentum, with an estimated improvement in net cash position. ($1 = 1.5305 Australian dollars) (Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)