After a prolonged battle for Australian dental care chain Pacific Smiles, Crescent Capital has set its sights across the Tasman, where it has launched a buyout proposal for Metro Performance Glass.
Crescent, a Sydney-based private equity firm, owns competitor Viridian New Zealand.
Its offer would value Metro at about $NZ15m ($13.6m).
The loss-making company has been moving to raise capital amid weak economic conditions across the Tasman, where construction activity has slowed.
Metro Performance Glass’s banks have extended debt deadlines to provide time to source new equity.
The company has previously said that it had received conditional offers to underwrite $NZ15m for a capital raising.
Crescent is offering NZ8c per share, subject to due diligence and funding, and at least 90 per cent acceptance by way of a takeover bid or more than 75 per cent shareholder approval under a scheme of arrangement.
Metro Performance Glass said in a statement that given the hurdles and risks associated with the proposal, directors considered it unlikely that it would be in the best interests of shareholders to pursue the buyout.
“However, directors are open to considering all options and will take advice and further consider the proposal before responding and making a further announcement.”
Crescent Capital had hopes to buy the Australian listed Pacific Smiles earlier this year, to add to its existing National Dental Care business.
But its offer was blocked by Genesis Capital, a private equity firm set up by operatives who previously worked at Crescent Capital.
Directors initially rejected the takeover bid, saying it was opportunistic and materially below the previous $2.05 per share offer from Crescent Capital.
But after a number of shareholders sold out, they changed their recommendation to say it was in the best interest of the company’s shareholders to accept the bid.
Genesis Capital owned 19.9 per cent when it blocked a $2.05 per share Crescent Capital scheme of arrangement that required a shareholder vote.
Crescent also part owned listed Australian Clinical Labs. It sold its 30 per cent stake in the Australian business for about $200m in September.
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