Archer Capital revives interest in NZ's Abano Healthcare

On Monday, Archer and Abano director Peter Hutson - who has a 14% stake in the company and has been a co-investor with its international ventures -  renewed an unsolicited proposal to acquire the Auckland-headquartered firm. Their first proposal was turned down one month earlier.

Set up in 1999, Abano is New Zealand's first major publicly-listed investor and operator in the private healthcare market in New Zealand, Australia and Southeast Asia.

According to a regulatory filing,  the revised bid lowered the indicative price to NZ$6.97-7.14 a share, to the reflect the recent 13.7% dividend payments and capital raisings.

The offer was rejected by the Abano board on the grounds that price range was "well below" what the company considered to be good value. Archer was also described as "a well-resourced potential competitor" that was asking for confidential and competitively sensitive information.

The proposed arrangement - which has a lower voting threshold of 75% shareholder support rather than the minimum 90% required under a full takeover - also involves the sale of the company's audiology business, for a nominal sum, to interest associated with Hutson.

In a notice issued to the New Zealand Stock Exchange yesterday, Archer disclosed an option over shares held by Healthcare Industry Limited - which Hutson part owns - and also in shares held by Steamboat Capital, the Ballroom Trust, and James Reeves. Together they own just under 19.99% of Abano.

A deed relating to the option states the parties involved won't do anything to foster an alternative proposal during the five-month period.

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• Topics
• Australasia
• Healthcare
• Buyouts
• Australia
• Archer Capital
• buyout