Australian IVF provider Virtus Health appears headed back into private equity ownership for the second time in a decade.Credit:
BGH made the first bid for the company last year,starting at $7.10 a share,with Virtus later granting due diligence to CapVest for shares at $7.60 each. BGH has gone to the Takeovers Panel twice throughout the bidding war,arguing that dealings between CapVest and Virtus were not facilitating a competitive bidding process.
Last month Virtus entered into a binding implementation deed with CapVest,for shares at $8.25 each,less any dividends paid out by the company.
This deal requires 75 per cent of shareholder votes for approval,however. BGH,which owns 19.99 per cent of Virtus stock,has pledged to vote against any deal for a CapVest takeover.
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On Wednesday BGH made a fresh play to engage with the Virtus board by lobbing an off-market takeover bid for shares at $8 each. The firm is ready to buy up stock it does not already own from this week,and the offer is not subject to any minimum acceptance requirements.
“Accepting the offer provides Virtus shareholders with a simple and attractive cash exit from their investment in Virtus with certainty regarding the tax implications,” BGH said in a statement filed with the ASX.
The Virtus board said it would consider the bid and update shareholders about whether it is “superior” to CapVest’s offer.