Cruz Blanca board signals approval of Bupa offer

Cruz Blanca Salud’s board of directors has recommended shareholders participate in a tender offer for control of the firm by Spain’s Grupo Bupa Sanitas, saying they see the deal as favorable. The Spanish firm launched a tender for up to 56% of the firm earlier this month. It is offering CLP525 ($0.97) per share, and is targeting a minimum of 50.1% of the firm, equal to 360m shares. The directors presented their opinions on the offer in a regulatory filing published on Wednesday, saying the price was attractive and that liquidity could fall after the acquisition. Some also pointed to uncertainties around potential changes to regulations governing Chile’s health system. Cruz Blanca’s shares closed at CLP462.5 on Wednesday, down 2.85% on the day and 4.8% from a week earlier. The offer is open until February 21. Banchile is arranging the transaction.