InvoCare Ltd (ASX: IVC) shares are soaring today, up 10.82%.
S&P/ASX 200 Index (ASX: XJO) funeral services provider closed on Friday trading for $11.09 per share. Shares are currently changing hands for $12.29 apiece.
This comes on news that private equity firm TPG Capital Global has lobbed an improved takeover proposal for InvoCare. TPGâs initial proposal was reported on 7 March. InvoCare shares closed up 35% on the day.
What is TPGâs new takeover offer?
InvoCare shares are once more leaping higher on todayâs news of the revised proposal.
The conditional, non-binding, and indicative proposal would see TPG acquire all InvoCare shares for $13.00 per share in cash by way of a scheme of arrangement.
Thatâs 35 cents per share more than the $12.65 offered under the initial proposal. That proposal was withdrawn on 24 April.
The revised proposal equates to an equity value of approximately $1.9 billion and an enterprise value of some $2.2 billion.
Management notes this is a 45.3% premium to InvoCareâs undisturbed closing share price of $8.95 per share on 6 March 2023, the day before the initial takeover offer was reported.
And itâs 17% higher than Fridayâs closing price.
Under the revised proposal, InvoCare will also be allowed to pay a fully franked special dividend before the takeover is completed. The company expects that to be around 60 cents per share.
The amount shareholders will receive will be reduced by the amount of the special dividend. However, thanks to the potential tax benefits, stockholders who can utilise the franking credits could see their shares worth around $13.25 apiece.
InvoCareâs board has agreed to grant TPG the opportunity to conduct due diligence for five weeks on an exclusive basis.
Should TPG come back with a binding proposal of at least $13.00 per InvoCare share, the board said it intends to unanimously recommend shareholders vote in favour, barring a superior proposal.
Shareholders do not need to take any action at this point.
How have InvoCare shares been tracking?
With todayâs big intraday leap factored in, InvoCare shares are up a healthy 12% so far in 2023. That handily outpaces the 4.3% year-to-date gain posted by the ASX 200.
The post InvoCare shares rocket 11% today on sweetened $2.2 billion takeover offer appeared first on The Motley Fool Australia.
Should you invest $1,000 in Invocare Limited right now?
Before you consider Invocare Limited, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Invocare Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of April 3 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Why BHP, InvoCare, Lake Resources, and South32 shares are dropping today
- ASX 200 takeover target dives 15% after its deal is laid to rest
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/TeVYm2O
Stock Pick 