Estia Health shareholders vote in favour of acquisition by Bain Capital

Estia Health ASX: EHE - Google Finance 15 November, 2023

In an ASX release, Estia Health Limited (ASX: EHE) reports that shareholders have voted in favour of the proposed acquisition by Firebird BidCo Pty Ltd, controlled by Bain Capital, LP, through a scheme of arrangement.

The Scheme Resolution, approving the acquisition, received strong support with 91.80% of present and voting shareholders and 99.74% of votes in favour of a proposed offer of $3.08 per Estia Health share.

It was stated during today’s shareholder meeting that “Kroll Australia Pty Ltd, the Independent Expert, has concluded that the Scheme is fair and reasonable and therefore in the best interests of Estia Health Shareholders, in the absence of a superior proposal”.

Estia Health shares on a 100% controlling interest basis were valued by Kroll Australia at between $2.83 and $3.21 per share.

The scheme is now pending approval from the Supreme Court of New South Wales, scheduled for December 5, 2023. The scheme is expected to become effective on December 15, 2023, subject to court approval and other customary conditions precedent.

Estia operates over 70 aged care facilities in South Australia, Victoria, NSW and Queensland and like most aged care providers has faced considerable headwinds over the last few years, with the share price severely impacted by the pandemic.

Estia Health’s ordinary shares are anticipated to be suspended from trading on the ASX on December 6, 2023, following the lodgment of court orders with the Australian Securities and Investments Commission.

The successful vote marks a significant step towards the completion of the acquisition.


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