Wakefield's third bid for Norfolk gains ground

By Jason Krupp

July 29 (BusinessDesk) - Hospital operator Wakefield Health Ltd.'s third bid to acquire a controlling stake in Norfolk Investments may be gaining traction, with the company announcing today that it now holds 28.7% of the takeover target.

Wakefield said shareholders representing about 5.5% of Norfolk's shares had accepted its $3.80 apiece offer since it was launched on July 20, which values the company at $24.2 million. That puts it just over half away towards its target level, with the deal conditional on Wakefield gaining 50% of the shares by Aug. 18, and business operations continuing as per normal.

This is Wakefield's third attempt to acquire a significant stake in Norfolk, which owns 60% of the Grace Hospital in Tauranga.

It first announced its interest in buying the stake in March last year when it said it had commitments to sell from holders of more than 51% of Norfolk, including Wakefield's then chairman John Calder, and was launching a full $22.6 million, or $3.54 per share, takeover offer.

In June last year, Wakefield raised its offer to $23 million, or $3.60 per share, but still failed to complete the transaction and the on-again, off-again discussions have continued.

In May, when Wakefield announced its results for the year ended March 31, it said its failed takeover attempts had cost it $350,000 that year.

Southern Cross Hospitals indirectly holds the other 40% of Grace Hospital.
Wakefield already owns two hospitals in Wellington and one in Hastings.

Wakefield shares were unchanged at $5.24 today, and have decline 8.9% so far this year.

(BusinessDesk)

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