Regis Healthcare Ltd's <REG.AX> top shareholder and Australian investment firm Washington H. Soul Pattinson and Co <SOL.AX> on Thursday offered to buy the struggling old-age home operator for A$556.4 million ($405.84 million).
Washington H. Soul said it and Ashburn Pty Ltd are offering A$1.85 per share, a premium of 25.4% to Regis' last closing price. Ashburn owns 27.2% of Regis.
"Given the regulatory uncertainty and funding challenges currently facing the aged care industry, WHSP believes that Regis' long-term prospects will be best served in a privately owned setting," said Rob Millner, chairman of Washington H. Soul.
Regis' stock has lost about 40% in value year-to-date as the COVID-19 pandemic has pushed costs higher and led to several infections at its old-age homes.
The company, which earlier reported a 54% drop in underlying net profit after tax for the full year, had net debt of A$236.7 million as of June 30.
Regis did not immediately respond to a request for comment.au
($1 = 1.3710 Australian dollars)
(Reporting by Arpit Nayak in Bengaluru; Editing by Ramakrishnan M.)
