In trending news on Australian stocks, shares of ASX-listed Pacific Smiles (AU:PSQ) surged 11.4% following a new offer from Genesis Capital. Interestingly, Genesis Capital has enhanced its takeover proposal for the dental group by 25%, valuing it at nearly AU$279 million, or AU$1.75 per share. PSQ shares surpassed the previous high set in November 2022, reaching AU$1.66 on Tuesday.
Since the initial takeover news, PSQ stock has been experiencing volatility. Overall, the Pacific Smiles share price is up by almost 10% year-to-date.
Pacific Smiles Group is among the largest dentist service companies in Australia, with a huge network of over 120 dental centers.
Pacific Smiles Takeover Timeline
Pacific Smiles stock jumped by 19% on December 18, 2023, after receiving the first offer of AU$223 million or AU$1.40 per share from Genesis Capital. However, the company rejected the offer, deeming it undervalued. In January, Genesis Capital acquired 31.75 million Pacific Smiles shares, amounting to 19.9% of the issued capital.
The board seems more receptive to the latest offer and intends to advise shareholders to support the same. Both companies have entered into an agreement known as a process deed, outlining the framework for the due diligence process. However, this does not guarantee a transaction on the stated terms or any transaction at all.
Last month, Pacific Smiles reported its first-half results for FY24, showcasing strong volume and profit growth. The group’s revenue increased by 10% year-over-year, while underlying EBITDA surged 51%. Additionally, the company reaffirmed its FY24 underlying EBITDA in the range of AU$26 million to AU$28 million, reflecting an increase from the AU$24.1 million reported in FY23.
What is Pacific Smiles Share Price Prediction?
On TipRanks, PSQ stock has received a Hold consensus rating based on two Hold recommendations. The Pacific Smiles share price target is AU$1.40, which is 14% below the current trading price.
