CapVest sweetens bid for Australia’s Virtus Health in $515 million deal Leave a comment

(Reuters) -Australian fertility services provider Virtus Health Ltd said on Monday it had received a fresh takeover offer of A$692 million ($515.06 million) from CapVest Partners LLP, trumping a rival bid from top investor BGH Capital.

The A$8.1 per share offer by UK-based investment firm CapVest was at a 0.6% discount to Virtus’ last close on April 6, after which its shares were placed in a trading halt, but was above BGH’s A$8 per share offer.

Virtus has fielded eight bids in the last four months, highlighting how fertility companies are attracting growing interest from private equity firms as the number of couples with fertility problems and the age of first time mothers rises.

The Australian government’s Takeover Panel, in a separate statement, has passed interim orders prohibiting BGH Capital from acquiring additional shares of Virtus Health on the market above its bid price.

BGH capital owns 19.99% of Virtus health and is the largest shareholders of the company.

Virtus said it unanimously recommended that the shareholders vote in favour of the revised offer from CapVest in the absence of a superior proposal.

($1 = 1.3432 Australian dollars)

Reporting by Tejaswi Marthi and Himanshi Akhand in Bengaluru; Editing by Rashmi Aich


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