Insurer HBF backs $303m National Dental Care buyout bid for Pacific Smiles

WA private health insurer HBF will vote in favour of Pacific Smiles’ $303 million buyout by National Dental Care, which had for months been locked in a bidding war with rival Genesis Capital. Newcastle-based Pacific Smiles knocked back a $1.40-a-share bid from Genesis in late December last year before receiving an improved $1.75 offer from the healthcare-focused Australian private equity group in March. But Pacific Smiles at the end of April revealed NDC BidCo — a subsidiary of National Dental Care — had come back with a $1.90 a share which the board at the time deemed superior to the Genesis offer. The target company ultimately entered a scheme of implementation deed with NDC. Pacific Smiles is HBF’s partner in its WA dental rollout, with the private health insurer owning about a 10 per cent stake in the group. On Monday, Pacific Smiles said it had been advised by HBF that the insurer would be voting all the shares it controls in favour of the NDC scheme. Pacific Smiles said the independent expert had concluded the proposal was fair and reasonable, and therefore was in the best interests of shareholders. “The Pacific Smiles directors continue to recommend that shareholders vote in favour of the scheme subject only to no superior proposal emerging and the independent expert not withdrawing or adversely changing its conclusion,” it said in a statement.