MA Financial Backs NDC's Acquisition of Pacific Smiles Group
PSQ (PSQ) Share Update July 2024 Wednesday 24th
MA Financial Supports Pacific Smiles' Acquisition by NDC
Pacific Smiles Group Limited (ASX: PSQ) has announced that MA Financial Group Limited will vote its 13.4% shareholding in favor of the proposed acquisition by NDC BidCo Pty Ltd.
Instant Summary:
- MA Financial to vote 13.4% shareholding in favor of the acquisition.
- NDC proposes to acquire 100% of Pacific Smiles shares for $1.91 per share.
- HBF Health Limited also supports the acquisition with its 10% shareholding.
- Genesis Capital Manager I Pty Ltd opposes the current scheme.
- Shareholders are encouraged to vote on the Scheme Resolution.
Details of the Acquisition
Pacific Smiles Group Limited (ASX: PSQ) has entered into a Scheme Implementation Deed with NDC BidCo Pty Ltd (NDC). Under this agreement, NDC proposes to acquire 100% of the shares in Pacific Smiles by way of a scheme of arrangement. Shareholders are offered a cash consideration of $1.91 per share, subject to certain conditions.
MA Financial Group Limited, which holds approximately 13.43% of Pacific Smiles shares, has announced its intention to vote in favor of the Scheme Resolution. This decision is contingent on the absence of a higher offer.
Support and Opposition
On 22 July 2024, HBF Health Limited, which holds a 10% shareholding in Pacific Smiles, also declared its support for the Scheme Resolution. However, Genesis Capital Manager I Pty Ltd has expressed its intention to vote against the scheme as it is currently formulated.
The Pacific Smiles Board has emphasized the importance of shareholder votes in determining whether the scheme proceeds. They strongly encourage all shareholders to participate in the voting process.
Next Steps
Shareholders can find more details on how to vote in the Scheme Booklet or by visiting the Pacific Smiles investor website. The final decision will significantly impact the future direction of Pacific Smiles Group.
The announcement that MA Financial will support the acquisition is a positive development for Pacific Smiles Group. With both MA Financial and HBF Health Limited backing the scheme, there is strong momentum for the acquisition to proceed. However, the opposition from Genesis Capital Manager I Pty Ltd introduces some uncertainty.
If the acquisition is approved, shareholders will receive $1.91 per share, which could lead to a short-term increase in stock price. The long-term impact will depend on how effectively NDC integrates Pacific Smiles into its operations and realizes synergies.
Investor Reaction:
Investor reactions have been mixed. Some investors are optimistic about the acquisition, seeing it as an opportunity for Pacific Smiles to grow under new ownership. Others are cautious, concerned about the opposition from Genesis Capital Manager I Pty Ltd and the potential for competing offers.
Conclusion:
Investors should closely monitor developments related to the acquisition of Pacific Smiles Group by NDC BidCo Pty Ltd. The support from MA Financial and HBF Health Limited is a strong indicator of the scheme's potential success. Shareholders are encouraged to review the Scheme Booklet and participate in the voting process to ensure their interests are represented.