Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Should 1300 Smiles (ASX:ONT) Investors Be Happy About A Possible Acquisition?

1300 Smiles Limited (ASX:ONT) investors have sent the share price down almost 1% after learning about its pursuit of a potential acquisition. 

1300 Smiles Limited (ASX: ONT) investors have sent the share price down almost 1% after learning about its pursuit of a potential acquisition.

1300SMILES owns and operates dental practices located across Australia. Dr Daryl Holmes founded the company and began his professional career in the RAAF as a dental officer.

What Is 1300 Smiles Doing?

This morning the Australian Financial Review reported that private equity business BGH Capital is in talks with New Zealand stock exchange listed Abano Healthcare Group Limited (NZX: ABA) to acquire it entirely.

BGH Capital is in exclusive talks with Abano, but the AFR also revealed that 1300 Smiles is keen on Abano’s Maven Dental Group which has 116 practices and it’s apparently the second biggest dental roll-up group in Australia.

1300 Smiles has been slow-and-steady with its acquisitions in recent years, but this acquisition could be a game-changer for the company if it were to go ahead.

The dental company has acknowledged the media reporting this morning and confirmed that it is indeed interested in the Maven Dental Group and it’s in confidential discussions with Abano and it’s conducting due diligence “investigations”.

1300 Smiles stated, “The outcome of the due diligence and negotiations is speculative. Shareholders should note that there is no certainty that any agreement will be reached or that any transaction will eventuate from the current or any future discussions or diligence investigations.”

The company said that a further announcement will be made if the negotiations are completed and result in a binding agreement.

Is The 1300 Smiles Share Price A Buy?

An acquisition of this size could be transformative for 1300 Smiles, but I wouldn’t buy with the expectation that the deal will go ahead, as it seems BGH is in the prime position.

It’s valued at 18 times the 2019 financial year earnings with a fully franked dividend yield of 4.2%. This share price has been drifting lower in recent times, so it could be an opportunistic time to buy, but the growth shares revealed for free in the report below could be even better picks.

[ls_content_block id=”18457″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content