CapVest Partners gets approval from FIRB to takeover Virtus Health (ASX:VRT) - Kalkine Media

March 25, 2022 08:52 PM AEDT | By Aditi Saha
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Highlights

  • CapVest Partners has received confirmation from FIRB to buy Virtus Health.
  • This follows an announcement by the company on 14 March 2022.
  • Virtus Health Limited specialises in the business of fertility, medical day procedures, and medical diagnostics.

The shares of healthcare giant Virtus Health Limited (ASX:VRT) closed in red today (25 March 2022) as the company shared an update on its acquisition by CapVest Partners.

Virtus shares last traded at AU$8.10 each, down 0.25% on ASX.

Despite today’s low, the stock has had a good year in terms of performance. The S&P/ASX 200 Health Care (AXHJ) Index, however, ended 0.82% lower at 39,816.60 points.

Commenting on the acquisition update, CapVest Senior Partner, Kate Briant, said:

What’s the update on deal?

The Foreign Investment Review Board (FIRB) has provided written approval to CapVest Partners and said federal government has no objections to proposed acquisition of Virtus Health.

This follows an announcement by the company on 14 March 2022 that CapVest has executed a transaction implementation deed (TID) with Virtus Health. This will make CapVest to buy entire 100% holding of Virtus by a scheme of arrangement.

The confirmation meets the FIRB criteria for the scheme of arrangement as well as a concurrent off-market takeover offer, although it is still subject to other restrictions.

Virtus Health Limited (ASX:VRT)

Source: © Cammeraydave | Megapixl.com

What does Virtus do?

Virtus Health Limited specialises in the business of fertility, medical day procedures, and medical diagnostics. New South Wales, Queensland, Victoria, Tasmania, Australian Diagnostics, and International are the company's six segments from where it operates.

It offers a variety of assisted reproductive treatments and specialised diagnostics and day hospital care. Virtus provides general pathology as well as genetic testing services also. CapVest is a renowned private equity firm formed in 1999.

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Bottom line

Over the course of a year, Virtus has exhibited massive growth despite the overall healthcare sector’s unpleasant performance. Now, it remains to be seen how FIRB’s approval of CapVest’s acquisition of Virtus would impact the business.

Good read: Here’s why Sonic Healthcare (ASX:SHL) closed strong on Wednesday


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