Surgery Partners stock jumps on takeover bid

Published 28/01/2025, 15:30
© Reuters.

Investing.com -- Shares of Surgery Partners, Inc. (NASDAQ: NASDAQ:SGRY) surged 21% following the announcement of a takeover offer from its significant shareholder, Bain Capital Private Equity. The private equity firm proposed to acquire all outstanding shares of the company not already owned by Bain Capital for $25.75 per share in cash. This offer represents a premium of approximately 27% over the stock’s closing price on January 24, 2025, and about 25% above the volume-weighted average share price for the last 30 trading days ending on that date.

The takeover proposal came after a strategic review involving multiple financial and strategic parties, which did not result in a transaction. Bain Capital expressed that the offer aims to provide Surgery Partners’ shareholders with immediate liquidity and certainty of value at an attractive premium to the current stock price. The firm also emphasized their respect for the company’s independent directors and their collaborative approach, stating that the public disclosure of the proposal is merely to satisfy regulatory requirements.

The letter to Surgery Partners’ board, dated January 27, 2025, highlighted Bain Capital’s long-standing investment in the company and its support for the board’s efforts to maximize stockholder value. Bain Capital’s proposal is contingent on the approval of a Special Committee of independent and disinterested directors and a majority of the shares of common stock not owned by Bain Capital or any other stockholder participating in the potential transaction.

The proposed acquisition is subject to confirmatory due diligence and the negotiation and execution of definitive transaction documentation. Bain Capital has made it clear that they have no interest in selling their shares of common stock and are only interested in acquiring the shares they do not own. The firm’s legal counsel, Kirkland & Ellis LLP, is prepared to deliver drafts of definitive transaction documentation promptly, assuming the acceptance of their proposal and access to due diligence and the company’s management.

The news of the takeover bid has significantly impacted Surgery Partners’ stock price, reflecting investor optimism about the potential for a successful acquisition at a premium to the current market value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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