EHE 0.42% $2.38 estia health limited

takeover target?

  1. 163 Posts.
    following was extracted from data room in The Australian. I brought some today, not only because the change of the regulation possibly redefine the outlook of the age care sectors but also Estia seems likely a takeover target.  any
    thought?

    Estia centre of attention as Canberra alters planned cuts


    As the aged-care community focused on the federal government’s altered $2 billion planned cuts to the sector’s funding yesterday, which sparked a sector rally, analysts were discussing the merger and acquisition possibilities for the troubled Estia.
    Estia’s adviser Macquarie Capital is believed to be assessing potential options for the recently listed aged-care provider, including a capital raising and the possibility of a sale.
    It is understood neither of listed rivals Japara Healthcare and Regis has ruled out an acquisition of the company.
    The management of the unlisted rival Opal also has an appetite for a deal, but it is thought its shareholders are not eager for the company to embark on an acquisition, sources say.
    It is thought shareholders in Estia are now reasonably eager for the company to be sold. Some think a purchase by a private equity buyer, taking the business out of the public eye, would be a positive outcome.
    Archer Capital and Bain Capital are both aged-care sector investors. The former owns the aged-care business Allity and the latter is soon to cement a deal to invest in Craigcare in Perth.
    Estia was previously floated by Quadrant Private Equity but its shares later crashed on the back of profit downgrades.
 
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Currently unlisted public company.

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