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  • National Veterinary Care (NVL) has seen its shares skyrocket after entering into a binding scheme implementation deed (SID) with VetPartners
  • Under the arrangement, VetPartners will buy 100 per cent of the company’s issued share capital for $3.70 per share
  • Company directors have strongly recommended that shareholders vote in favour of the scheme during a meeting to be held early next year
  • This deal is considered to be strategic in building on key strengths to create a stronger community of care
  • National Veterinary Care is up 53.4 per cent with shares trading for $3.62 each

National Veterinary Care (NVL) has seen its shares skyrocket after entering into a binding scheme implementation deed (SID) with VetPartners.

Under the scheme arrangement, VetPartners will acquire 100 per cent of the company’s issued share capital for $3.70 per share in cash.

The scheme consideration of $3.70 per share represents a 56.8 per cent premium to NVL’s closing share price of $2.36 on December 13 2019 and a 59.5 per cent premium to the 1-month volume weighted average price of $2.32.

It seems the company’s Board of Directors fully supports the arrangement and “unanimously” recommends that NVL shareholders vote in favour of the scheme.

“VetPartners’ proposal represents a significant premium to National Veterinary Care’s current share price, is 100% cash consideration and offers National Veterinary Care shareholders a high degree of certainty,” National Veterinary Care Chair Susan Forrester said.

Trading under the name “VetPartners”, the Australian Veterinary Owner’s League owns and operates over 140 vet clinics in Australia, New Zealand and Singapore.

VetPartners CEO John Burns considers this acquisition strategic in building on key strengths to create a stronger community of care.

“National Veterinary Care and VetPartners have a shared passion for creating a supportive network to enable veterinary professionals to focus on what they love – providing care for animals and their families,” John said.

Similarly, NVL’s Managing Director Tomas Steenackers is pleased with the joining of the businesses.

“Together, National Veterinary Care and VetPartners will continue to support and improve the broader veterinary industry across Australia and New Zealand, which has been a core philosophy of National Veterinary Care since it started in 2015,” Tomas said.

The scheme consideration implies a fully diluted market capitalisation for NVL of approximately $251.5 million and an enterprise valuation of approximately $325.5 million.

A scheme booklet with further details on the proposal will be issued in mid-February 2020. This will be followed by a scheme meeting in mid-March before the scheme is expected to be implemented in early April.

National Veterinary Care is up 53.4 per cent with shares trading for $3.62 each at 11:25 am AEDT.

NVL by the numbers
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