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Written by Sam Fountain
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Wednesday, 04 July 2007 |
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The UK’s leading dentistry chain, Norfolk-based Oasis Healthcare, has dropped a £77 million offer for the firm from private equity group, Duke Street Capital, in favour of a more lucrative £85m deal from fellow dentist and major shareholder, Associated Dental Practices (ADP).
The ADP counter-bid returns 91p per ordinary share to investors compared to the 82p originally proposed by Duke Street earlier in the month in what was also a recommended offer.
ADP placed its offer a week after Duke Street’s. Oasis said that after careful consideration and consultation by its independent directors with financial advisers Oriel Securities and ADP, it had decided to recommend the offer in view of the materially higher value it represented compared with the Duke Street offer.
The ADP offer values the entire issued and to be issued ordinary share capital of Oasis at approximately £85.3m. Oasis will have to pay Duke Street one per cent of its offer value – £770k – under the terms of their inducement fee agreement.
Oasis is the UK’s leading dental body corporate, while ADP sits in third place behind Integrated Dental Holdings. If the deal goes through, the combined group will have almost 200 nationwide practices between them.
Ron Trenter, Oasis chairman, said: “We believe that the ADP Offer, which is at a clear premium to the value offered under the Duke Street Offer, provides Oasis shareholders with an attractive cash price which reflects the quality of the Oasis business.
“Accordingly, the Independent Directors of Oasis have withdrawn the recommendation of the Duke Street Offer and are now recommending that Oasis shareholders accept the ADP Offer.”
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