Pacific Smiles board approves acquisition of NDC

After months of negotiations and competing offers, Pacific Smiles (ASX: PSQ) has finally agreed to a takeover deal with National Dental Care (NDC) for a whopping $303 million. This decision comes after the board of Pacific Smiles was considering a non-binding offer from Genesis Capital, which had reached a value of $279 million.

The board had initially been leaning towards a deal with Genesis, but the new proposal from NDC, offering an 8.6% premium at $1.90 per share, was deemed superior. This marks a significant increase from the $1.40 per share that Genesis had initially offered back in December.

The potential tie-up between Pacific Smiles and NDC would bring together over 110 clinics under one ownership, creating a significant player in the dental industry. This move comes after Pacific Smiles co-founder Dr Alex Abrahams had previously lost a battle against Genesis in a bid to acquire assets from Smiles Inclusive.

The board of Pacific Smiles has unanimously recommended that shareholders vote in favor of the deal, which is set to be finalized pending approval from an independent expert, the court, and the Foreign Investment Review Board. If all goes according to plan, the scheme is expected to be implemented in August.

This acquisition represents a major milestone for both Pacific Smiles and NDC, as they look to strengthen their presence in the dental care sector and deliver value to their shareholders.