Australian funeral services provider InvoCare said on Tuesday it received a non-binding takeover offer from U.S. private equity firm TPG Global for $1.22bn, sending its shares 39.1% higher.
Shares of InvoCare soared to A$12.450 and were set to post a record jump after the announcement, while the broader market (.AXJO) fell 0.1% in early trade.
The A$12.65 per share proposal, which is at a 41.3% premium to the stock’s last close, represents the first proposal in 2023 by a private equity firm amid increasing merger and acquisition interest in Australia.
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TPG Global has also acquired an about 17.8% interest in InvoCare through a combination of physical ownership and derivatives, the company said in a statement.
New South Wales-based InvoCare said it is supporting the proposal and had commenced an assessment of the same.
The company reported last month that it swung to an annual loss of A$1.8 million, from a profit of A$80.2 million a year earlier.
The latest proposal by TPG Global follows a A$1.38 billion bid for employee management services provider Smartgroup Corp (SIQ.AX) in 2021 wherein takeover talks ended.
Source: Reuters
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