Funeral operator InvoCare agrees to $1.8b private equity takeover

Funeral home operator InvoCare, the business behind Le Pine, White Lady Funerals and Simplicity Funerals, has agreed to a revised $1.83 billion takeover offer from private equity firm TPG.

TPG proposed a buyout offer of $12.70 per share for the Sydney-based company, down from a $13 per share offer in May, according to a statement on Wednesday. The deal also includes a franked special dividend of up to 60 cents per share that the board said represents implied value of up to approximately $12.96 per share.

The latest offer represents around a 42 per cent premium to the closing price on March 6.

The agreement could close the book on brinkmanship about terms between TPG and InvoCare’s board. TPG first approached Invocare in March with a $12.65 per share bid. The private equity firm briefly withdrew it the following month before making the $13 a share offer in May.

InvoCare’s board said it intended to unanimously recommend the offer if it became a binding transaction, and agreed to give TPG access for due diligence.

“The board is unanimous in its view that this transaction is in the best interests of InvoCare shareholders,” InvoCare Chairman Bart Vogel said in the statement.

“The board notes that the cash consideration delivers certainty of value to InvoCare shareholders and unanimously recommends that shareholders vote in favour.”

InvoCare shares rose as much as 6.2 per cent to $12.51 in early Sydney trading.