InvoCare knocks back $1.8b takeover offer from TPG Global

Funeral services provider InvoCare Limited (ASX: IVC) has denied TPG Global full due diligence access as part of a $1.8 billion takeover offer, but has given the suitor an opportunity to return with a larger bid.

Announced this morning, the Sydney-based operator of funeral companies Simplicity, White Lady Funerals and Value Cremations says the proposed takeover offer ‘does not provide compelling value for InvoCare shareholders’.

As such, the company’s board has informed TPG that it is ‘not prepared to grant full due diligence access’.

Under the initial proposal, TPG Global – a US investment manager that has backed the likes of Airbnb, Chobani, Calm, Greencross Vets and more – would have acquired 100 per cent of InvoCare shares for $12.65 each.

Currently, TPG holds a 19.9 per cent interest in InvoCare – 2.1 per cent more than its position on 7 March when the bid was placed – but the global investment giant will need to return with a more substantial proposal if any full takeover is to proceed.

“In order to determine if TPG are able to formulate a revised proposal that the Board could support and in respect of which it could grant TPG full access to due diligence, InvoCare has offered to provide access to limited, non-public financial information on a non-exclusive basis,” says InvoCare.

“The provision of this information is subject to certain conditions including the signing of an appropriate confidentiality and standstill agreement.

“There is no certainty that the Indicative Proposal will result in a revised proposal or a transaction being put forward to InvoCare shareholders for consideration.”

Until a more tantalising bid is put forward, the InvoCare Board still recommends shareholders take no action in relation to the initial proposal.