Abano shares jump 10% on takeover speculation
By Paul McBeth
Sept. 16 (BusinessDesk) - Abano Healthcare shares jumped 10 percent after the dental clinic operator said it's still in talks with a number of potential suitors.
The company confirmed that discussions are continuing after a report in The Australian newspaper named private equity investor BGH Capital among potential bidders for the company.
Abano said in July that it had received a number of expressions of interest as the trans-Tasman dental market undergoes consolidation. It reiterated that today, saying discussions are still ongoing.
"The Abano board continues to consider these as part of a wider review of strategy, asset mix and capital structure and has appointed advisors to assist," it said in a statement.
The shares rose 38 cents to $4.12, the highest this month. However, the stock is down 36 percent since the start of the year, matching those of its Australian peers who are struggling with tough trading conditions.
Abano said there was no certainty the discussions will lead to a transaction.