👉 Background: InvoCare is the largest funeral services operator in Australia. Think: cemeteries or “memorial parks” as well as crematoria across Australia and New Zealand.
👉 What happened: InvoCare owns some of the big names in the space like Le Pine, White Lady Funerals and Simplicity Funerals. Over the past 12 months, Invocare has had a pretty poor financial performance.. And it share price is down over 25%.
👉 What else: But TPG Capital clearly sees the beauty in this beast - it purchased up 17.8% of Invocare’s shares. And has now made an $1.8 billion takeover bid for the company, which was a 40% premium to its latest closing price.
💡 A takeover bid is an offer made by a company or investor to acquire the majority or all of shares of a publicly-traded company. It works like this: the bidder, in this case, TPG Capital, will make a formal offer to the shareholders of the target company - InvoCare.
💡 Generally, they offer to purchase the shares at a premium to the current market price. That’s as a little sweetener to the deal - in this case, a 40% premium.
💡 Right now, Invocare can respond to the takeover bid in a few different ways:
Given TPG Capital already holds 17.8% of the shares in Invocare, it is in a pretty strong position if this bid goes to a shareholder vote.
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