Pacific Smiles Group Limited (ASX: PSQ) Announces Fourth Supplementary Target’s Statement
Pacific Smiles Group Limited (ASX: PSQ) has issued its fourth supplementary target’s statement in response to an off-market takeover bid from Beam Dental Bidco Pty Ltd. The statement was prepared in accordance with the Corporations Act 2001 and lodged with the Australian Securities and Investments Commission (ASIC).
Takeover Bid Overview
Beam Dental’s takeover bid for all fully paid ordinary shares in Pacific Smiles has made significant progress, with the offer now on track to close at 7:00pm (Sydney time) on 29 November 2024. The bid will not be extended unless Beam Dental achieves a voting power of at least 50% or an alternative proposal surfaces prior to the deadline.
Shareholder Support
As of 22 November 2024, Beam Dental reported a voting power of 32.93% in Pacific Smiles. Notably, multiple shareholders representing approximately 12% of voting power have expressed their support for Beam Dental’s strategy or indicated plans to accept the offer imminently.
Directors’ Recommendation
The Board of Pacific Smiles now unanimously recommends shareholders accept the cash offer. This recommendation is based on the expected control Beam Dental will have, the lack of superior proposals, and the certainty of cash value provided by the offer.
CEO Gary Carroll stated, “The Board believes that the risks of remaining a minority shareholder in Pacific Smiles now outweigh the advantages, leading to our recommendation to accept the cash offer.”
Reasons for Acceptance
Key reasons to accept the cash offer include the unconditional status of the offer, the assurance of receiving cash within 20 days of valid acceptance, and the likelihood that this is the highest price shareholders can expect for their shares in the near term.
Risks Mentioned
Shareholders are reminded of the risks of potential future appreciation of shares and the inability to withdraw their acceptance once submitted. The Directors acknowledge that individual shareholder circumstances may differ, recommending further financial and taxation advice.
Motley Fool contributor Aaron Shaw 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.
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