20-Nov-2020:  REG: Regis Rejects Non-binding Indicative Offer

Also, 19-Nov-2020 (4:42pm, i.e. after market close):  Non-binding indicative proposal to acquire Regis Healthcare   and (4:48pm)   Becoming a substantial holder from SOL

SOL (Washington H Soul Pattinson & Co) have an arrangement with Ashburn Pty Ltd and Ashburn owned 27.23% of Regis Healthcare (REG) yesterday.  SOL and Ashburn Pty Ltd have together launched an offer to acquire REG for $1.85/share, reflecting a 25% premium to last night’s $1.475/share close.   So far, REG is up around +20% today, at around $1.77, but have been as high as $1.815, so there is obviously some doubt that this deal will go ahead, particularly as the REG board have rejected it this morning.

WHSP (SOL) has proposed two alternative forms of consideration to Regis shareholders, being full cash consideration or a scrip alternative in a newly incorporated company, allowing Regis shareholders to retain an exposure to Regis as a privately operated business.  Funding is expected to be provided by cash, undrawn credit facilities and other liquid financial assets on WHSP's balance sheet.

Now we wait and see if any other bidders join the fray, or if SOL/Ashburn are prepared to sweeten their offer to get the REG board onside.

We were discussing PE (Private Equity) companies here over the past couple of days, and I mentioned that WMA have around one quarter of their LIC invested in PE companies, and that IFT is a listed company that operate exactly like a PE company [I hold IFT shares].  Well, WHSP (SOL) are another company that do operate in a similar way to PE, however SOL do tend to have a longer term focus and are prepared to hold many of their positions for decades.  They also don't mind the odd shorter term deal here and there, but they definitely have a longer term focus than the majority of Private Equity consortiums out there.  The big turn-off for me however with SOL (meaning lately, because I used to hold them) is their controlling 50% interest in New Hope Coal, one of Australia's largest thermal/energy coal producers.  If they offloaded their NHC stake, I would probably buy back into SOL - at the right price.