Invocare (ASX:IVC) has announced its entry into a Scheme Implementation Deed with TPG.

Invocare shareholders are expected to receive A$12.70 per share in cash.

This cash consideration reflects a 42% premium to Invocare’s closing share price as of 6 March 2023.

Additionally, the Invocare board has unanimously recommended that shareholders vote in favour of the scheme.

The cash consideration reflects an implied equity value of A$1.8 billion and an enterprise value of A$2.2 billion.

TPG has informed Invocare that it plans to fund the cash consideration through equity committed by certain funds managed or advised by TPG.

Invocare has noted that the near-term macro environment remains challenging and market volumes have softened in Q2 FY23.

Despite this, the company has continued to see less week-to-week volatility in demand for its services during 1H FY23.

Invocare anticipates an operating EBITDA of between A$61 million to A$63 million for the first half of the year.

Shareholders are expected to receive A$12.70 per share in cash, inclusive of a fully franked special dividend of up to A$0.60 per Invocare share.

Invocare is a multinational company that provides funeral services.