The non-binding offer of A$1.40 per share in cash represents a 17.2% premium to the stock's last close on Friday.

Shares of Pacific Smiles rose as much as 18.8% to A$1.42 in their biggest intraday gain since April 24, 2020. The stock also hit its highest level since Sept. 21.

Pacific Smiles said Genesis Capital was considering options for its shareholders to roll their shares into unlisted entity.

Genesis Capital has acquired an 18.75% stake in company, the dental centres operator said.

The board considers the offer is opportunistically timed, Pacific Smiles said, adding that it would assess its merits.

Henry Jennings, a senior analyst and portfolio manager at Marcustoday Financial Newsletter, considers the offer does not adequately value the company.

"Clearly the market thinks this is the first shot across the bows and not enough to win the day. There could be other interested parties," he said.

($1 = 1.4888 Australian dollars)

(Reporting by John Biju in Bengaluru; Editing by Subhranshu Sahu)

By John Biju