This article is from the Australian Property Journal archive
INVESTMENT firm Washington H. Soul Pattinson and Co and Ashburn Pty Ltd have made a $556 million takeover bid of aged care operator Regis Healthcare.
WHSP along with Ashburn, the latter being controlled by Bryan Dorman, co-founder and major shareholder of Regis, propose to acquire all of the share capital of Regis for consideration of $1.85 per share, with Ashburn controlling 27.7% of Regis ordinary shares on issue.
WHSP has proposed either full cash consideration of a scrip alternative in a newly incorporated company to Regis shareholders. This would allow shareholders to retain an exposure to Regis as a privately-operated business.
“WHSP is a patient and long-term investor and is committed to providing access to capital and support to Regis as it navigates through this challenging period and transitions to a new operating environment in the future,” said Rob Millner, chairman of WHSP.
The proposed price would allow Regis shareholders to realise value for their shares, representing a 25% premium to $1.475, being the closing price of shares on November 19; 59% premium to $1.163, being the 1-month VWAP of shares on November 19; and 64% premium to $1.125, being the 3-month VWAP of shares again on 19 November 2020.
“Given the regulatory uncertainty and funding challenges currently facing the aged care industry, WHSP believes that Regis’ long-term prospects will be best served in a privately owned setting and that WHSP’s long investment horizons and access to capital make it and Ashburn Pty Ltd logical partners to oversee Regis’ growth and development,” said Millner.
“The regulatory uncertainty and challenges facing the residential aged care sector are significant,” said Bryan Dorman.
As a founder and shareholder of Regis, I believe that WHSP’s proposal offers compelling value for Regis’ shareholders. Further, WHSP’s longer term investment strategy will provide the strength and stability for the benefit of our residents and employees,” concluded Dorman.
WHSP has also announced the appointment of Credit Suisse as financial adviser and MinterEllison as legal counsel.
