Capio rejects €1.67bn Apax, Nordic Capital offer

Swedish healthcare company Capio has rejected a €1.67bn unsolicited offer by private equity firms Apax Partners and Nordic Capital.

Apax Partners, a global private equity firm, and Nordic Capital, a Swedish buyout firm, has had an unsolicited Skr15.6 billion (€1.67 billion) offer Swedish healthcare business Capio rejected.
 
Apax Partners and Nordic Capital made an offer of Skr153 per share for the all shares in Capio, representing a 35 percent premium to the average closing price for the last month, according to the firms.
 
Capio released a statement this morning saying that it had received a non-binding proposal by Opica, a holding vehicle owned by Apax Partners and Nordic Capital, on August 28. Following a board meeting on 30 August, Capio said that it had “promptly” informed the private equity firms that it had unanimously rejected the offer.
 
“The board is surprised that Opica has proceeded with its unsolicited offer in light of the earlier rejection,” said the statement, adding that the board felt the offer did not “adequately reflect the value of Capio shares, given Capio’s attractive growth prospects and business fundamentals”.
 
Apax Partners owns 56 percent of Opica through its Apax Europe VI fund and Apax France, with Nordic Capital Fund VI holding the balance.
 
A source close to the deal said that Apax Partners and Nordic Capital had made a “full and fair offer based on the terms laid out in the proposal” and that it wasn’t uncommon for boards of public companies to initially reject private equity offers.
 
Roger Holtback, chairman of Capio, said that he did not and will not participate in either Opica or Capio’s handling of the offer, due to conflict of interest: “I am chairman of the board of Capio and at the same time chairman of NC Advisory AB’s review committee [Nordic Capital’s advisory board]. This means that there is a conflict of interest”.
 

Capio: today’s share price on the OMX

Capio shares were trading at Skr162.50 at 12.50 BST today, up from Thursday’s closing price of Skr122.5.
 
Capio has more than 100 operating units and approximately 16,000 employees based in Sweden, Norway, Denmark, Finland, France, the UK and Spain. The business has reported an annual turnover rate of more than Skr11 billion (€1.18 billion).
 
Apax Partners’ current interests in the healthcare sector include General Healthcare Group, acquired alongside Netcare in a £2.2 billion deal in April, and Mölnlycke Health Care, a Swedish manufacturer of medical supplies, acquired from Nordic Capital in April 2005. Nordic Capital currently owns stakes in Nycomed, a pharmaceutical business, and wheelchair manufacturer Permobil.