CVC to buy radiology group for $2.7bn
RADIOLOGY and healthcare firm DCA Group has received a $2.7 billion takeover offer from buyout firm CVC Asia Pacific.
AUSTRALIA'S biggest operator of X-ray centres, DCA Group, is likely to be sold for $2.7 billion under the nation's biggest private equity buy-out.
DCA, which has also branched into aged care, said today it had signed an agreement to implement the $3.50 per share offer from a consortium led by CVC Asia Pacific.
CVC, which was formed in 1999 as a joint venture between CVC Capital Partners and Citigroup. beat a rival private equity bid from Pacific Equity Partners together with Macquarie Bank.
DCA received advice on the proposals from merchant bank UBS Warburg while Grant Samuel acted as an independent expert on the deal.
DCA chairman Robert Purves today said there were a number of proposals.
"The board was unanimous in the view that this offer from CVC be put to shareholders to consider, this process will happen with the meeting of shareholders prior to christmas," Mr Purves said today. He said any superior proposal would be considered.
However DCA is subject to a no-talk and no-solicitation rule and will forfeit a $17.8 million fee for breaking the deal - "We thought we could live with those conditions," Mr Purves said.
Under the scheme existing management led by managing director David Vaux will remain in charge of the company. Mr Vaux and other management and staff have also abeen offered a stake in the group.
DCA's aged care division comprises Amity in Australia and Guardian in New Zealand.
Its residential aged care service include nursing accommodation and residences for the elderly.
Mr Purves today said he was given assurances by CVC that "they have the expertise and they know the requirements on them on the importance of being sensitive in the area (of aged and health care)."