Sunday, 4th December 2022
The Australian "Private equity eyes Pacific Smiles as EGM looms" written by Bridget Carter
Private equity firms Crescent Capital and BGH Capital are expected to pay close attention to the controversy at $255m dental care chain Pacific Smiles.
The buyout funds own the rivals of Pacific Smiles, with Crescent the owner of National Dental Care and BGH the owner of Abano Healthcare. Observers say a logical outcome would be for Pacific Smiles to be acquired by private equity, and BGH and Crescent are considered obvious suitors, although other private equity firms are also likely to show some interest.
Pacific Smiles is advised by Greenhill and it would almost certainly have tested buyer interest around the market. The trouble for Pacific Smiles, however, is that although the company’s share price has almost halved since the start of the year, some believe it’s still expensive based on various earnings metrics.
Founder and shareholder Alex Abrahams has called an extraordinary general meeting to oust the board. It could go either way, but many think it is unlikely that the institutional investors of Pacific Smiles would want to hand over the keys to Dr Abrahams. Both camps are lobbying hard for their preferred outcome at the extraordinary general meeting on December 19.
Yet the winner could be a suitor that turns up from out of left field. Dr Abrahams founded Pacific Smiles with Alison Hughes almost 20 years ago. They reaped almost $100m when it floated in 2014. Dr Abrahams has accused the current directors of prioritising expansion over profitability. He hopes to install himself as chair alongside four directors he has nominated.
The Australian "Private equity eyes Pacific Smiles as EGM looms" written by Bridget Carter
Private equity firms Crescent Capital and BGH Capital are expected to pay close attention to the controversy at $255m dental care chain Pacific Smiles.
The buyout funds own the rivals of Pacific Smiles, with Crescent the owner of National Dental Care and BGH the owner of Abano Healthcare. Observers say a logical outcome would be for Pacific Smiles to be acquired by private equity, and BGH and Crescent are considered obvious suitors, although other private equity firms are also likely to show some interest.
Pacific Smiles is advised by Greenhill and it would almost certainly have tested buyer interest around the market. The trouble for Pacific Smiles, however, is that although the company’s share price has almost halved since the start of the year, some believe it’s still expensive based on various earnings metrics.
Founder and shareholder Alex Abrahams has called an extraordinary general meeting to oust the board. It could go either way, but many think it is unlikely that the institutional investors of Pacific Smiles would want to hand over the keys to Dr Abrahams. Both camps are lobbying hard for their preferred outcome at the extraordinary general meeting on December 19.
Yet the winner could be a suitor that turns up from out of left field. Dr Abrahams founded Pacific Smiles with Alison Hughes almost 20 years ago. They reaped almost $100m when it floated in 2014. Dr Abrahams has accused the current directors of prioritising expansion over profitability. He hopes to install himself as chair alongside four directors he has nominated.
Monday, 28th November, 2022
Australian Financial Review (AFR) report "Pacific Smiles investors deliver a strike on pay"
written by Elouise Fowler
"More than 53 per cent of Pacific Smiles investors voted against the managing director’s proposed long-term bonus scheme, as the under-fire dental group faces a move by founder and major shareholder Alex Abrahams to oust the board.
Irate shareholders also delivered a first strike against the whole board’s pay and conditions via proxy votes, ahead of the group’s annual general meeting on Monday.
Pacific Smiles co-founder Alex Abrahams, who is seeking to oust the board. Jessica Hromas
Some unhappy investors are backing Mr Abrahams because they agree that management and the board mis-stepped by aggressively rolling out dental clinics in recent years, sources told The Australian Financial Review’s Street Talk"
Australian Financial Review (AFR) report "Pacific Smiles investors deliver a strike on pay"
written by Elouise Fowler
"More than 53 per cent of Pacific Smiles investors voted against the managing director’s proposed long-term bonus scheme, as the under-fire dental group faces a move by founder and major shareholder Alex Abrahams to oust the board.
Irate shareholders also delivered a first strike against the whole board’s pay and conditions via proxy votes, ahead of the group’s annual general meeting on Monday.
Pacific Smiles co-founder Alex Abrahams, who is seeking to oust the board. Jessica Hromas
Some unhappy investors are backing Mr Abrahams because they agree that management and the board mis-stepped by aggressively rolling out dental clinics in recent years, sources told The Australian Financial Review’s Street Talk"
Sunday, 27th November, 2022
Australian Financial Review report "Fundie Richmond Hill picks a side in Pacific Smiles battle"
As dental group Pacific Smiles battles former founder Alex Abrahams for investors’ hearts and votes, Melbourne-based fund manager Richmond Hill Capital has made its position known to some of the people involved. Sources charged with rustling up votes reckon Richmond Hill Capital’s ready to put its stock behind Abrahams, agreeing that the company’s current management and board mis-stepped in rolling out clinics so aggressively in recent years.
While stockpickers can forgive a misstep, they always like it if a management team owns up to it. The fact Pacific Smiles hasn’t, and wants to push ahead with the strategy, could signal the company’s board and management team is so wedded to its rollout that it would be unable to ever change its mind.
Richmond Hill, run by former Viburnum stockpickers Alex White and Edmon Odza, is also said to agree that Pacific Smiles could have more dental sector experience on its board and in the management team - which is another Abrahams bugbear. So we’re told Richmond Hill’s votes look likely to go to Abrahams. Brokers reckon it’s also been buying stock in recent days, which would take it beyond the substantial disclosure mark.
Australian Financial Review report "Fundie Richmond Hill picks a side in Pacific Smiles battle"
As dental group Pacific Smiles battles former founder Alex Abrahams for investors’ hearts and votes, Melbourne-based fund manager Richmond Hill Capital has made its position known to some of the people involved. Sources charged with rustling up votes reckon Richmond Hill Capital’s ready to put its stock behind Abrahams, agreeing that the company’s current management and board mis-stepped in rolling out clinics so aggressively in recent years.
While stockpickers can forgive a misstep, they always like it if a management team owns up to it. The fact Pacific Smiles hasn’t, and wants to push ahead with the strategy, could signal the company’s board and management team is so wedded to its rollout that it would be unable to ever change its mind.
Richmond Hill, run by former Viburnum stockpickers Alex White and Edmon Odza, is also said to agree that Pacific Smiles could have more dental sector experience on its board and in the management team - which is another Abrahams bugbear. So we’re told Richmond Hill’s votes look likely to go to Abrahams. Brokers reckon it’s also been buying stock in recent days, which would take it beyond the substantial disclosure mark.
Sunday, 13th November, 2022
Australian Financial Review (AFR) report "Pacific Smiles books in Greenhill for activist fight"
written by Anthony Macdonald, Sarah Thompson, Kanika Sood
"Under fire dental group Pacific Smiles has called in advisory firm Greenhill &Co for back-up as it tries to fend off founder Alex Abrahams and create value for shareholders.It is understood Greenhill’s bankers are providing advice on the company’s response to Abrahams’ activist campaign, and also keeping watch over the group’s shoulder given private equity interest in the sector"
Australian Financial Review (AFR) report "Pacific Smiles books in Greenhill for activist fight"
written by Anthony Macdonald, Sarah Thompson, Kanika Sood
"Under fire dental group Pacific Smiles has called in advisory firm Greenhill &Co for back-up as it tries to fend off founder Alex Abrahams and create value for shareholders.It is understood Greenhill’s bankers are providing advice on the company’s response to Abrahams’ activist campaign, and also keeping watch over the group’s shoulder given private equity interest in the sector"
Friday, 11th November, 2022
The Australian report "Pacific Smiles defers its AGM after founder Alex Abrahams calls for a spill of the board for a spill of the board"
ASX-listed dental group Pacific Smiles has postponed its annual meeting after its founder, Alex Abrahams, called for a spill of the company’s board and accused it of prioritising expansion over profit. Pacific Smiles will delay its annual meeting by a week to November 28 to give shareholders time to digest information it is preparing to counter Dr Abrahams’ accusations.
The Australian report "Pacific Smiles defers its AGM after founder Alex Abrahams calls for a spill of the board for a spill of the board"
ASX-listed dental group Pacific Smiles has postponed its annual meeting after its founder, Alex Abrahams, called for a spill of the company’s board and accused it of prioritising expansion over profit. Pacific Smiles will delay its annual meeting by a week to November 28 to give shareholders time to digest information it is preparing to counter Dr Abrahams’ accusations.
Monday, 7th November, 2022
Australian Financial Review (AFR) report "Founder vs new brigade in Pacific Smiles boardroom battle"
written by Anthony Macdonald, Sarah Thompson, Kanika Sood
"There’s a battle brewing at battling listed dental group Pacific Smiles, with founder and major shareholder Alexander Abrahams seeking to roll the company’s entire board and re-set its strategy. Abrahams, who stepped down from the company’s board in 2020, is seeking all seven directors’ heads and wants to replace them with himself, former PwC audit partner Robin Low, ex The a2 Milk Company executive Susan Massasso and dentist Navroop Singh".
Australian Financial Review (AFR) report "Founder vs new brigade in Pacific Smiles boardroom battle"
written by Anthony Macdonald, Sarah Thompson, Kanika Sood
"There’s a battle brewing at battling listed dental group Pacific Smiles, with founder and major shareholder Alexander Abrahams seeking to roll the company’s entire board and re-set its strategy. Abrahams, who stepped down from the company’s board in 2020, is seeking all seven directors’ heads and wants to replace them with himself, former PwC audit partner Robin Low, ex The a2 Milk Company executive Susan Massasso and dentist Navroop Singh".