The share price of fertility treatment provider Virtus Health Ltd (ASX: VRT) closed higher today on the back of its seventh takeover offer.
This time, BGH Capital is back in the hot seat with an $8 per share off-market takeover bid posed to Virtus Health shareholders.
The fund has also threatened to derail its rival bidder's competing takeover offer.
The Virtus Health share price finished at $8.15 today, 0.99% higher than its previous close.
The gain, while small, saw the company's stock outperform the broader market on Wednesday.
The All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) both finished lower by 0.57% and 0.5% respectively.
Let's take a closer look at the drama emanating from Virtus Health's camp on Wednesday.
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Virtus Health lobbed $8 unconditional off-market bid
The Virtus Health share price was in the green on Wednesday. Its gains follow confirmation the company's board is considering an unsolicited off-market takeover offer posed this morning.
BGH – which already owns a 19.99% stake in Virtus Health – has been battling rival CapVest to win the fertility treatment provider.
The latter's $8.25 takeover offer was accepted by Virtus Health's board last month. It's minus any dividends, including a recent 12-cent interim dividend and a potential special dividend of up to 44 cents.
The offer would see Virtus Health acquired via a scheme of arrangement.
75% of shareholders must vote on the scheme for it to go ahead. Of those votes, more than 50% must be in favour.
As part of its offer, CapVest arranged to make an off-market takeover offer for Virtus Health at a price of $8.10 per share, conditional on the scheme failing. The off-market takeover offer is also less dividends.
But BGH has hit back today with an unconditional all-cash offer.
It also emphasised its cash pay-out will provide a "simple and attractive cash exit" with "certainty regarding the tax implications".
On top of its bid, BGH has once again made its intention to vote its 19.99% stake in Virtus Health against CapVest's acquisition clear. It noted:
[R]ecognising that voter turnout at scheme meetings is often substantially lower than 100%, there is significant uncertainty that the CapVest scheme will meet the required approval thresholds considering our stated intention to vote against the CapVest scheme.
Virtus Health responded to BGH's bid late this morning. It said it is considering if BGH's bid represents a superior proposal to the one already on the table.
For now, it's urging shareholders to take no action. A target statement, including an independent expert's report, will be provided to shareholders in due time.
Virtus Health share price snapshot
2022 has been a good year so far for the Virtus Health share price.
It has gained almost 20% year to date. It is also 26% higher than it was this time last year.
