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Bridgepoint makes recommended cash offer for Finland’s Terveystalo Healthcare

European private equity firm Bridgepoint, via Star Healthcare, has made a public tender offer to purchase all of the issued and outstanding shares in Terveystalo Healthcare not owned by

European private equity firm Bridgepoint, via Star Healthcare, has made a public tender offer to purchase all of the issued and outstanding shares in Terveystalo Healthcare not owned by the target company and option rights in Terveystalo.

The price is EUR2 per share in cash, representing a premium of about 203 per cent to the closing price of Terveystalo’s shares on Nasdaq OMX Helsinki on 16 January, the last trading day preceding the announcement.

The offer values the issued share capital and option rights of Terveystalo at EUR162m.

Terveystalo shareholders, representing some 51.8 per cent of the shares and voting rights, including mutual pension insurance companies Ilmarinen and Varma, other major insurance companies and Terveystalo board members, the managing director and members of the management team, have undertaken irrevocably and unconditionally to accept the offer.

The board of directors of Terveystalo unanimously recommends the shareholders and holders of option rights to accept the offer. The acceptance period is expected to commence on 26 January and to run until 16 February.

Mikael Lövgren, partner responsible for Bridgepoint’s investment activities in the Nordic region, says: ‘As the demand for healthcare services in Finland is increasing, the need for the private sector to complement the public healthcare is also growing. Terveystalo is the leading private healthcare service provider in Finland and has therefore unique possibilities to respond to this market trend. By providing the management with support in terms of experience and capital, we can support Terveystalo’s management to continue to expand and strengthen Terveystalo’s leading market position.’

Kari Neilimo, vice chairman of the board of directors of Terveystalo, says: ‘Terveystalo has since its foundation in 2001 quickly reached its goal to become the largest private healthcare service company in Finland with more than one hundred units including 15 private clinic hospitals in more than 50 municipalities. The company needs further resources to consolidate the companies acquired by it and to continue to develop high quality healthcare services and its growth strategy.’

The two biggest shareholders of Terveystalo, Ilmarinen and Varma, each hold 14 per cent of the shares and votes and have undertaken to accept the tender offer.

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