Corporate: National Veterinary Care handed a $251.5m offer – a nice +50pc bonus just in time for Christmas
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National Veterinary Care (ASX:NVL) shares shot up over 50 per cent this morning on news of a takeover bid that the board wasted no time in unanimously endorsing.
Private company VetPartners, which operates 140 clinics across Australia, New Zealand and Singapore, made a $3.70 per share takeover bid, valuing National Veterinary Care at $251.5m — a 56.8 per cent premium to its closing share price last Friday.
The transaction will need approval from the courts and the Australian Foreign Investment Review Board in addition to shareholders.
But the company told shareholders they should accept the offer. Chair Susan Forrester said she believed the proposal was consistent with maximising shareholder value.
VetPartners’ CEO John Burns wooed National Veterinary Care shareholders by telling them the companies had shared values.
“National Veterinary Care and VetPartners have a shared passion for creating a supportive network to enable veterinary professionals to focus on what they love – providing care for animals and their families,” he said.
“Our combined management teams are excited about working together to build on the key strengths of each business to create one stronger community that values learning, individual and excellence in patient care and that strengthens the veterinary industry as a whole.”
It comes less than a year after previously listed company Greencross was acquired by US private equity firm TG Capital.
In the last 12 months, NVL shares had gained a fair 24 per cent but with today’s 53 per cent rise shares have almost doubled this year.
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