Oasis Healthcare has confirmed its support to an £85m takeover offer from its largest shareholder, Associated Dental Practices (ADP).
Following rounds of talks, Oasis, the UK’s biggest corporate dentistry group, decided to recommend ADP’s 91p-a-share bid for the company, turning its back on a previously recommended bid from private equity firm Duke Street Capital.
A bid battle for the group broke out earlier this month after Norwich-based Oasis announced it had agreed to a £77m takeover offer (82p per share) from Duke Street.
That sparked the interest from Reigate-based rival ADP, which currently holds a 19.3% stake in Oasis.
Oasis chairman Ron Trenter said: ‘We believe that the ADP offer, which is at a clear premium to the value offered under the Duke Street offer, provides Oasis shareholders with an attractive cash price which reflects the quality of the Oasis business.’
Under the terms of an inducement fee agreement, Oasis will be obliged to pay Duke Street a fee equal to 1% of the Duke Street offer, around £0.77m, plus any applicable VAT to the extent recoverable by Oasis.