Funerals business rejects $1.82bn offer

Funeral services business InvoCare (ASX: IVC) has rejected a $1.82bn indicative acquisition proposal from TPG Global.

InvoCare announced on 27 March that its board had taken financial and legal advice and carefully considered the US-based private equity firm’s $12.65-a-share cash offer.

“The board has unanimously concluded that the indicative proposal does not provide compelling value for InvoCare shareholders. Accordingly, the board of InvoCare has informed TPG that it is not prepared to grant full due diligence access,” InvoCare said.

InvoCare offered to provide access to limited, non-public financial information on a non-exclusive basis to determine whether TPG will be able to come up with a revised proposal that the InvoCare board would support. If this is achieved, InvoCare will grant full due diligence access.

In the meantime, provision of the limited information will be subject to conditions including the signing of a confidentiality and standstill agreement.

TPG has built up a 19.9% interest in InvoCare via a combination of direct ownership of shares and derivatives.

InvoCare announced TPG’s bid on 7 March, sending its shares up 34% from $9 to $12.08. The shares were trading around $11.90 after the 27 March announcement.

The company has appointed Gresham Advisory Partners as financial adviser and Clayton Utz as legal adviser.

InvoCare provides funeral services in Australia, New Zealand and Singapore owning numerous local brands including White Lady Funerals. The business also operates private memorial parks and crematoria in Australia and New Zealand and provides pet cremation services in Australia.

Image: White Lady Funerals is one of InvoCare’s brands.