BGH Capital, Canada’s OTPP to buy NZ dental business Abano for $95.4m

Photo: Bloomberg

BGH Capital and Canadian pension fund Ontario Teachers’ Pension Plan Board (OTPP) are acquiring New Zealand-listed dental group Abano Healthcare for NZ$150 million ($95.4 million).

Adams NZ Bidco Limited, an entity formed by BGH Capital and OTPP, has offered to acquire 100 per cent shares of Abano at NZ$5.7 apiece, representing an enterprise value of NZ$300 million for the company. Abano on Tuesday announced its board was in favour of the takeover.

“After a thorough assessment of the options, including the divestment of individual businesses or the group under different transaction alternatives, and the status quo, the Abano Board has concluded that Bidco’s Scheme proposal represents the most compelling value for shareholders,” said Pip Dunphy, chairman of Abano.

The transaction, subject to regulatory approvals, will be implemented through a court-approved scheme of arrangement and is expected to be completed by April 2020.

“The transaction accelerates a capital return to shareholders and mitigates the risks that would otherwise be involved in delivering the opportunities from executing Abano’s strategic plan over time,” Dunphy added.

Abano owns one of the largest dental networks in Australasia, operating Lumino The Dentists in New Zealand and Maven Dental Group in Australia. BGH Capital founder Simon Harle called Abano a “pre-eminent dental business” in the region.

“We are confident that with our continued investment in the business and ongoing support it will further grow and prosper,” he said.

The acquisition marks another bet by the private equity firm in the healthcare sector in the region after its takeover offer was rebuffed by Australian healthcare services provider Healthscope.

BGH Capital, founded in 2017, closed its first fund at A$2.6 billion ($1.75 billion) in May 2018, claiming to be the largest private equity fund focused on Australia and New Zealand. The fund counts Singapore’s Temasek as a limited partner.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.