Peter Hutson Today Announced His Resignation From Abano
Peter Hutson Today Announced That he Has Resigned His Directorship In Abano Healthcare Group
'On behalf of Healthcare Industries Limited ('˜HIL') I have chosen to resign in order to allow for a focused business discussion around the merits of Archer's proposal relative to Abano's recent performance track record and outlook.
'I fundamentally do not believe this company can prosper in the public domain and with its current business plan and capability.
'As Abano's largest shareholder, HIL demands higher performance than what Abano has delivered since the sale of Bay NZ in 2009. HIL has brought a party that has offered a 28% premium to shareholders compared to a 1.7% internal rate of return since the sale of Bay NZ, a company founded by HIL.
'HIL is also supportive of Archer's proposal, because as a fellow clinician, I believe it offers an exciting future for all and will open up new and fresh approaches to clinical professional development.
'I believe resigning from the Board will allow discussion to clearly focus on the fundamentals of the company's performance, and the urgent need for change. The last four years of under-performance highlights the fact that Abano's transformation strategy is not working in a public setting.
'The chairman has acknowledged that the company is limited by the realities of the time and management effort required to implement a successful and long term, sustainable integration strategy. The situation needs to change. 'We have put a cash proposal on the table with an embedded takeover premium for control and clearly indicated to The Board that subject to a short period of due diligence, a higher price is possible. Shareholders own the company and the choice of ownership should be in their hands.
'˜I wish the company all the best during this period,' said Mr Hutson. Peter Hutson and Archer Capital approached the Abano Healthcare board with a nonbinding, indicative and incomplete proposal equating up to $7.50 per share. This represented a 28% premium to the 1 month VWAP on market close 19 July, being the date prior to the initial approach to Abano.
HIL will continue to exercise its rights as a major shareholder.