Genesis in Pacific Smiles as Crescent w alks |UBS, Freehills in CSR’s tent | Transu rban switches direction

Good evening,

Genesis Capital’s efforts to woo Pacific Smiles′ dentist-heavy shareholder base appear to be on track.

Street Talk understands the Michael Caristo and Chris Yoo-led buyout firm, which is sitting on a 19.9 per cent shareholding, has secured the support of a bunch of investors who speak for another 30 per cent of the register, including that of founder Alex Abraham.

It comes as would-be interloper, Crescent Capital Partners, is understood to have walked away ahead of half-year results on Tuesday when the in-play dental roll-up is expected to update the market on the takeover interest.

Pacific Smiles knocked back a $223 million buyout proposal from Genesis in December but left the door open for the firm to return if it can muster a higher offer. At the time, the board said Genesis’ $1.40-a-share offer was “opportunistic and materially undervalues” the company.

Street Talk reported that Michael Alscher-led Crescent was hanging around the $222 million market cap stock in January. However, sources said the buyout firm had decided to prioritise its exit from National Dental Care rather than make a bolt-on acquisition.

Pacific Smiles is currently trading at $1.40 (see chart below), or at Genesis’ non-binding indicative offer, implying the market doesn’t think the bid price is sufficient – or that an interloper is about to appear.

Shareholders are said to be attracted to the Genesis proposal (the scrip rollover option) and track record of profitable growth with Impression Dental Group. It’s also keen to remind the market that it built its pre-bid stake by snapping up stock from Pinnacle and Spheria Asset Management at a discount to the current bid price.

Read the full story tomorrow and more on the Street Talk page.

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