Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Oceania Living mulls listing in midst of rest home boom

Oceania Living mulls listing in midst of retirement village building boom

By Suze Metherell

July 22 (BusinessDesk) - Oceania Living, the retirement village operator owned by funds associated with Macquarie Group, is mulling a public listing, raising funds in a sector that's in the midst of a building boom aimed at capitalising on an aging population.

Executives at the company weren't immediately available to comment after a report in the Australian Financial Review said Oceania was considering a $300 million listing on the ASX and NZX. Market sources confirmed a sale was under consideration. Oceania's direct parent is Retirement Care (NZ), which is owned by funds managed by Macquarie Specialised Asset Management.

Retirement Care's 2013 annual report shows the company had bank loans of about $274 million and shareholder loans at no interest of $238 million that mature in 2018, putting total borrowings at $537 million. The shareholders also held $15 million of convertible notes. The retirement village operator's net loss narrowed to $35.5 million in the year ended May 31, 2013, from $41.1 million a year earlier.

The report includes a note that the shareholders won't demand repayment of the loans unless they were confident the company could then continue as a going concern. In the 12 months ended May 31, 2013, Retirement Care had a net cash outflow of $30.2 million.

A listing of that size would be the second-largest this year on the NZX after the government's $733 million partial privatisation of Genesis Energy. and would see Oceania join listed retirement village operators Ryman Healthcare, Metlifecare and Summerset Group Holdings.

Oceania has hired First NZ Capital and Craigs Investment Partners to assist with an initial public offering and may consider a dual-listing on the Australian stock exchange, according to the AFR report.

Oceania operates more than 50 villages and rest homes across New Zealand, employing 3,200 staff for 1,000 people living independently and 3,600 seniors in its resthome and hospital beds, according to its website.

Oceania would be the latest in a pipeline of IPOs which have hit the local stock market. Tomorrow ikeGPS Group, which creates portable measuring devices, debuts on the NZX, while fruit exporter and packager Scales Corp is due to list on Friday, and Metro Performance Glass next week. Vista Entertainment International, a cinema software and data analytics company, is due in August as is ERoad, a logistics and transport tracking software and hardware developer.

Already this year four companies have gone public, including the government's partial privatisation of Genesis Energy, and previously private companies Intueri Education, Gentrack and Serko.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news