Liam Barry

South Australian company SILK Laser Clinic has seen a huge share-price increase this month up to $3.02 a share as of the 26^th of April.

The news comes after Australian Pharmaceutical Industries Pty Ltd (API), a subsidiary of national retail conglomerate Wesfarmers, announced a whopping $169M buyout bid for the beauty and cosmetics brand last Wednesday.

API’s latest bid for the skincare brand, which has opened more than one-hundred stores nationwide since its conception in 2009, would see SILK become a part of the Wesfarmers Health division, complementing the divisions existing presence in the sector through its ownership and operation of Clear Skincare Clinics.

Alex Beashel, a SILK representative has confirmed the brand’s intentions to go forth with API’s buyout deal:

“Following careful consideration and consultation with its advisers, the SILK Board has determined that it is in the best interests of SILK shareholders to progress the Indicative Proposal and allow API to undertake due diligence, and negotiation of a binding SID, on an exclusive basis over a period of 30 business days.

“The Board unanimously intends to recommend that SILK shareholders vote in favour of the proposed scheme of arrangement (at the offer price of $3.15 per share) and each director intends to vote any SILK shares they control in favour of the scheme”, she said.

Adding that the vote will be subject to a few factors, including any superior proposal being received:

“The vote will be subject to the parties entering into a binding SID on terms no less favourable to SILK’s shareholders than the Indicative Proposal, no superior proposal being received, as well as an independent expert concluding (and continuing to conclude) that the Indicative Proposal is in the best interests of SILK shareholders”, Alex stated.

SILK Lasers performed well last year, with a 38 per cent increase in revenue to $81.3M as it continued to meet customer demand for its services, including; laser hair removal, cosmetic injectables and skin treatments, which saw the brand ranked 49^th on InDaily’s Top 100 SA Companies of 2022.

After SILK Co-founder and Managing Director Martin Perelman initially having a simple three-year business plan to open three laser clinics in Adelaide, the latest $169M API buyout bid has seen the brand be a beacon of local success.