Private equity firm TPG Inc. has made a revised takeover proposal to Australian funeral home operator InvoCare Ltd. of around A$1.83 billion ($1.21 billion), down from about A$1.87 billion following exclusive due diligence, according to people familiar with the matter.
(Bloomberg) — Private equity firm TPG Inc. has made a revised takeover proposal to Australian funeral home operator InvoCare Ltd. of around A$1.83 billion ($1.21 billion), down from about A$1.87 billion following exclusive due diligence, according to people familiar with the matter.
The firm proposed a revised takeover offer of around A$12.70 per share for the Sydney-based company over the weekend, the people said, down from a A$13 per share offer in May. InvoCare requested a trading halt Monday morning ahead of a statement it planned to make on the TPG proposal.
It’s the latest twist in an on-again-off-again pursuit of the funeral business. TPG first approached Invocare with a A$12.65 per share offer in March, and briefly withdrew it the following month before making a revised offer in May of A$13 per share. InvoCare’s board said it intended to unanimously recommend the offer if it became a binding transaction, and agreed to provide an opportunity for due diligence to the private equity firm.
The Australian Financial Review reported earlier on Monday that TPG had threatened to end talks unless InvoCare agrees to a lower price, citing slowing death rates and weaker performance at InvoCare’s competitors.Â
Discussions are ongoing, details such as the offer price could change and no final decisions have been made, the people said. Representatives for InvoCare and TPG declined to comment.
TPG has accrued a 19.9% stake in the business, an InvoCare statement to the exchange on May 10 showed. The first unsolicited, non-binding proposal of A$12.65 in March marked a 41% premium to InvoCare’s A$8.95 share price at the time.Â
The private equity firm has invested in subsectors adjacent to the health-care industry, including drug-testing firm Novotech Health Holdings Pte, veterinary business Greencross Ltd. and non-prescription drugmaker iNova Pharmaceuticals.
Read More: Death-Care M&A Gets Traction in Uncertain World
InvoCare provides funeral services in Australia, New Zealand and Singapore, and operates private memorial parks and crematoria in Australia and New Zealand, its website shows.
(Updates with background and context from sixth paragraph.)
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