Shareholders in National Veterinary Care (ASX: NVL) will be getting a handsome return on their investments with the veterinary services operator having received a 100% takeover offer from VetPartners to acquire all shares at $3.70 per share.
The takeover offer values NVL at $251 million and represents a 56.8% premium on NVL’s closing price on 13 December 2019 of $2.36.
Since listing on the ASX at $1.20 per share in 2015, shares in NVL reached an all-time high of $3.65 upon announcement of the takeover offer, which will be subject to approval from shareholders and the Australian Foreign Investment Board.
“VetPartners’ proposal represents a significant premium to National Veterinary Care’s current share price, is 100% cash consideration, and offers National Veterinary Care shareholders a high degree of certainty. We believe the proposal is consistent with the Board’s efforts to maximise shareholder value,” said NVL Chair, Susan Forrester.
The scheme implementation deed will see the 103 veterinary service businesses run by NVL join the network of 140 clinics across Australia, New Zealand and Singapore owner-operated by VetPartners.
“National Veterinary Care and VetPartners have a shared passion for creating a supportive network to enable veterinary professionals to focus on what they love – providing care for animals and their families,” said VetPartners CEO, John Burns.
“Our combined management teams are excited about working together to build on the key strengths of each business to create one stronger community that values learning, individuality and excellence in patient care, and that strengthens the veterinary industry as a whole.”
The Australian veterinary industry has continued to see consolidation with a similar situation occurring in 2018 when formerly ASX-listed Greencross was taken over by U.S. private equity giant TPG Capital for $669 million.
Chairman and Founder of Greencross Vets, Glen Richards returned to the listed space in September 2018 when floating integrated healthcare services group Healthia (ASX: HLA) as Chairman.