In today’s briefing:
- Estia & Bain Enter Into Scheme Agreement
- Estia Health (EHE AU): Bain Capital’s Binding Proposal
- OreCorp Inks Deal With Silvercorp. Perseus In The Wings?
- OreCorp (ORR AU): Silvercorp’s Binding Proposal
Estia & Bain Enter Into Scheme Agreement
- After its initial bid of $3.00/share was rejected by Estia Health (EHE AU), Bain returned on the 7 June with a $3.20/share non-binding proposal and was granted exclusive due diligence.
- Estia and Bain Capital have now entered into a Scheme Implementation Agreement at A$3.20/share, a 50% premium to undisturbed.
- A shareholder meeting is expected to be held in November with implementation expected prior to the end of 2023.
Estia Health (EHE AU): Bain Capital’s Binding Proposal
- Estia Health (EHE AU) has entered a SID with Bain Capital at A$3.20 per share, a 49.5% premium to the undisturbed price (21 March).
- The offer is attractive in comparison to historical share prices and multiples. The offer is also attractive in comparison to the Japara Healthcare (JHC AU) precedent transaction.
- The MAC clause, particularly around material regulatory events, could be risky. At the last close and for an end-of-December payment, the gross and annualised spread is 3.7% and 9.5%, respectively.
OreCorp Inks Deal With Silvercorp. Perseus In The Wings?
- Western Australian-based miner OreCorp Ltd (ORR AU) has signed a Scheme Implementation Deed with Canada’s Silvercorp Metals (SVM CN).
- Assuming the Scheme is successful, OreCorp shareholders will receive A$0.15 in cash and 0.0967 new Silvercorp shares – or an implied value of A$0.60 – for each OreCorp share held.
- A shareholder meeting is expected to be held in mid-November with implementation expected end-Nov, early-Dec. Separately, Perseus (PRU AU) is understood to be kicking OreCorp’s tyres.
OreCorp (ORR AU): Silvercorp’s Binding Proposal
- Orecorp Ltd (ORR AU) has entered a SID with Silvercorp Metals (SVM US) at A$0.15 cash and 0.0967 SVM shares per ORR share, a 31.5% premium to the undisturbed price.
- The offer is attractive compared to the adjusted exchange ratios and historical prices. However, the offer is light in comparison to peer multiples.
- The bid could spur Perseus Mining (PRU AU), a rumoured suitor, to show its hand. At the last close, the gross spread of the offer is 19.1%.
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