Australia’s Virtus Health Ltd said on Monday it had accepted a sweetened A$704.8 million ($514 million) takeover offer from CapVest Partners LLP, which topped an improved offer from rival bidder BGH Capital.
However, the months-long bidding war for the in vitro fertilization service provider was not necessarily over as the deal with London-based CapVest allows the Virtus board to consider a superior proposal from Melbourne-based BGH or another party.
CapVest’s revised cash offer of A$8.25 per share is a 7per cent premium to Virtus’s Thursday close and a 58per cent premium to its close on Dec. 13, before the bidding war broke out.
The deal, unanimously recommended by the company’s board, knocks out a A$8.10 per share offer from Melbourne-based BGH Capital made after the market close on March 10. That offer was conditional on Virtus not signing an implementation deed with London-based CapVest.
The latest CapVest deal includes a potential simultaneous off-market takeover offer, if it does not reach the required minimum threshold of 50per cent shareholder acceptance.
Virtus’ share price has jumped around 64per cent since the end of 2019.
($1 = 1.3723 Australian dollars)
(Reporting by Savyata Mishra in Bengaluru; Editing by Richard Chang and Jane Wardell)
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