Overview of Pacific Smiles Group's response to off-market takeover bid

Pacific Smiles Group Limited (ASX:PSQ) has released a Target's Statement in response to an off-market takeover bid by Beam Dental Bidco Pty Ltd, an associate of Genesis Capital. The offer, which includes a cash, scrip, or mixed consideration, has been unanimously recommended for rejection by the Pacific Smiles Board. The company's strong operating performance and cash generation have led to the decision to advise shareholders to take no action in response to the offer.

Executive commentary on the rejection of the takeover bid

The Board of Pacific Smiles Group has carefully considered the unsolicited and opportunistic offer by Genesis Bidco and unanimously recommends shareholders to reject the bid. The offer, which is subject to conditions that are currently not capable of being satisfied, is deemed materially below the previous NDC Scheme and has not improved upon the company's strong operating performance and cash generation. The timing of the offer, amidst changes to the Board and management, is viewed as opportunistic. The company's leading position in the dental services sector and its net cash position further support the decision to advise shareholders to reject the offer.

Summary of Pacific Smiles Group's response and outlook

Pacific Smiles Group's rejection of the off-market takeover bid is based on the offer's conditions, timing, and its comparison to the previous NDC Scheme. The company's strong operating performance, cash generation, and leading position in the dental services sector have contributed to the unanimous recommendation for shareholders to reject the bid. The company's outlook emphasizes its commitment to reinvigorate its strategy and focus on operational levers necessary for continued growth, in consultation with dental practitioners, patients, and staff.