Australia Wesfarmers' unit to acquire aesthetics firm SILK Laser in improved deal (updated)

EC Healthcare

26/06/2023 01:48

(Adds deal details in paragraphs 2-5 & 8-9, share movement in
paragraph 6, Wesfarmers Health comment in paragraph 7)
       June 26 (Reuters) - Retail giant Wesfarmers'  WES.AX 
unit Australian Pharmaceutical Industries (API) said on Monday
that aesthetics firm SILK Laser Australia  SLA.AX  had agreed to
its improved acquisition bid in a deal now valued at about A$180
million ($120.24 million). 
    The deal implies a cash consideration of A$3.35 per share,
alongside an additional payment of a fully-franked dividend of
up to a maximum of 10 Australian cents per SILK share, compared
with API's earlier offer of A$3.15 per share. 
    However, the per-share consideration under the revived offer
is to be reduced by the cash component of any such dividends,
Wesfarmers added.
    The cash consideration of A$3.35 represents a premium of
38.4% to the closing price of A$2.42 per share on April 19, when
API announced its initial offer.
    API's proposal also acts as a counter-bid to the indicative
offer price of A$3.35 brought forward by Hong Kong-based EC
Healthcare  2138.HK , which was priced at a premium of 6.3% to
API's initial offer. 
    Shares of SILK advanced as much as 17.4% at A$3.31 in early
trade on Monday. 
    Through the acquisition, the company's health division is
looking to capitalize on expanding its footprint in the growing
market for aesthetic products and services, Wesfarmers Health
Managing Director Emily Amos said in a statement.
    SILK board has unanimously recommended that shareholders
vote in favour of the scheme, adding that the scheme is not
subject to due diligence or any form of financing.          
    SILK Shareholders will cast their votes on the deal at a
scheme meeting to be held in October, the companies said. 
    

($1 = 1.4970 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Kim Coghill
and Rashmi Aich)
 ((Roushni.Nair@thomsonreuters.com;))