Pacific Smiles Rejects Takeover Proposal

Sydney, Australia - Australian dentistry chain Pacific Smiles has turned down a takeover proposal from Genesis Capital while leaving the door open for a potential improved offer. The equity valuation of AUD 223.4 million ($151.1 million) offered by Genesis was deemed opportunistic and undervaluing by Pacific Smiles. Nevertheless, the company has agreed to provide limited access to its accounts to Genesis Capital.

Pacific Smiles, the third-largest dental-service organization in Australia, believes that the AUD 1.40-a-share proposal does not adequately reflect its market position, potential synergies available to any acquirer, or its strong financial performance. In fact, patient fees for the 2024 fiscal year have already increased by over 10% compared to the previous year. The company anticipates that its annual underlying earnings before interest, tax, depreciation, and amortization will range between AUD 26 million and AUD 28 million, representing a growth of 7.9% to 16% on fiscal 2023 figures.

Before the announcement of the proposed takeover, Pacific Smiles's shares were valued at AUD 1.195. They are currently trading at AUD 1.42.