EHE - Estia Health

[barney]

EHE failed to fill the gap in the above post and has fallen ~ 5% since the attempt. No news so still holding and a little happier today as it held $2.47. Volume is increasing and hopefully a few holders have been shaken out and we will see another rise next week. But honestly I have no idea where it will go.

Testing and nudging through the recent lows today ….. not ideal

 

[Trav.]

I was watching this all day today and should have bailed but entered again......but keep that on the down low

Currently down 4.1% but definitely would have liked it to hold $2.37......can I see a double bottom on the chart

 

[Dona Ferentes]

corona virus ... ouch

 

[Miner]

corona virus ... ouch

View attachment 101179

With Victoria, Corona and serious down fall on the performance, the price is now laterally drifting. But super fund invested on it - why ???

 

[TechnoCap]

next stop $2.86-2.91 - imo

 

[Dona Ferentes]

next stop $2.86-2.91 - imo

All quiet on EHE.

One analyst takes the view:

If you’re an efficient operator in the aged care space there are a lot of opportunities from an M & A perspective to acquire good assets at very attractive prices and at the same time we’ve seen quite a few large takeovers of aged care operating groups and we believe Estia itself is the target of potential acquisitions.

So, we think the intrinsic value is over $3 and currently the risk/reward looks to be very attractive.

If the Estia Health share price were to rise to $3 after a takeover offer, that would represent a potential rise of around 50%.

Estia Health recently made its own acquisition, buying four residential aged care homes from Premier Health Care Group for $62 million, excluding stamp duty and transaction costs,rtf.

In1Q of FY23, its ‘spot occupancy’ on its mature home portfolio of 6,163 places, excluding the Burton expansion, was 92.3% at 31 October 2022. Average occupancy for the quarter was 91.7% compared to 90.6% in the second half of FY22.

The impact of COVID-19 has “continued to decline” during the FY23 first quarter. Total estimated incremental costs associated with prevention and response were $8.9 million for the quarter, compared to $13.4 million in the prior quarter.

It’s expecting to see the industry benefit from higher occupancy as the impact of COVID-19 lessens and a reduction in new supply intersects with the ageing population. The number of people over 85 is projected to increase by 60% in the next decade.

..not sure if it's worth an entry in the tipping comp; but, if so, here's my commentary

 

[Dona Ferentes]

Trading around $2 a share.

Interim results for the six-month period ended 31 Dec 2022.
• $359.2 million revenue, up 9% from the prior six-month period
• Total EBITDA $40.7 million, excluding acquisition costs, increased from $4.7 million in the prior six-month period,
• $25.3 million Net Loss After Tax, compared to $44.3 million loss in the prior six-month period
• 3.7 cps fully-franked interim dividend declared
• 91.9% average occupancy, up from 90.6% in the prior six-month period
• COVID-19 cost impacts reduced by more than half compared to the prior six-month period, to $16.3 million, from $38.3 million
• $13.7 million of FY22 COVID-19 related grants approved in the period
• Increased net RAD inflows of $28.5 million
• Net Debt $59.7 million, adjusted Net Debt $103.2 million
• Successful integration of Premier Health Care homes (409 places), settled 01 Dec 2022
• Acquisition of a new 120 place home in Ballarat, Victoria
• On-Market share buy-back expected to recommence

 

[Dona Ferentes]

Trading around $2 a share....
• On-Market share buy-back expected to recommence

Et voilá


And textbook response

 

[Dona Ferentes]

Et voilá

And textbook response

And, lurking in the background

 

[Dona Ferentes]

And, lurking in the background

Unlikely to get a competing bid above $3.00, so it's thumb twiddling time.

 

[Dona Ferentes]

Done and dusted

 

[Dona Ferentes]

Done and dusted

not so fast, young fella.

there's been a bit of weakness and SP is drifting, now $2.76... away from the 3.20 deal.

Annuals out today, and

While Bain Capital’s exclusivity under the terms of the Process Deed ended on 27 July 2023, Estia Health and Bain Capital continue to engage in constructive discussions to progress the Potential Transaction.

...but ...

The Board of the Company reiterates that there is no certainty that this engagement will result in Bain Capital providing a binding proposal that is capable of being recommended to shareholders by the Board, the entry into a binding scheme implementation deed or completion of the Potential Transaction.

 

[Dona Ferentes]

Done and dusted

dinner's ready ..

Estia Health has entered into a scheme implementation agreement with Bain Capital, under which Bain has agreed to acquire Estia for $3.20 a share.

Estia is permitted to pay fully franked dividends of up to 12¢ per share, which would enable eligible shareholders to receive up to 5¢ per share in additional benefit from franking credits.

Estia’s board unanimously recommended that shareholders vote in favour of the scheme, in the absence of a superior proposal.

 

[System]

On December 18th, 2023, Estia Health Limited (EHE) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between EHE and its shareholders in connection with the acquisition of all the issued capital in EHE by Firebird BidCo Pty Ltd.