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

 


Major Acurity shareholders launch all-cash takeover bid

Major Acurity shareholders launch all-cash takeover bid

By Paul McBeth

July 28 (BusinessDesk) - The three biggest shareholders of Acurity Health Group have launched a cash takeover bid for the 29 percent they don't own, valuing the private hospital operator at $112.2 million, saying the firm faces a big struggle lifting its flagship Wellington hospital up to earthquake code.

Connor Healthcare, an entity set up by principal shareholders the Stewart family, Royston Hospital Trust Board, and Evolution Healthcare, are offering $6.50 a share for the rest of Acurity, a 24 percent premium to the last trading price of $5.25, the company said in a statement. Connor cites a Forsyth Barr report estimating capital expenditure needs of $50 million to upgrade the Wakefield hospital in Wellington and illiquidity of the shares as driving the need for the group to be privatised.

"Acurity faces formidable challenges including considerable capital expenditure estimated at approximately $50 million to meet the earthquake code requirements at its flagship hospital in Wellington," Connor spokesman Mark Stewart said. "This capital expenditure represents between $2 and $3 per share purely to maintain the existing capacity at the hospital."

Sydney-based Evolution bought an 11 percent stake in Acurity last year, paying $5.50 a share, and also owns Boulcott hospital in Hutt City. The Stewart family and Royston launched a successful partial takeover in 2012 at $6 a share.

The takeover offer is expected to be sent to shareholders on Aug. 26, and will need minimum acceptances of 90 percent to allow Connor to exert the mop-up provisions. The deal will also be subject to approval from the Overseas Investment Office.

The shares were unchanged at $5.25 on Friday, and have decreased 3.5 percent this year. The company has net tangible assets per share of $5.368, according to NZX data.

In May, Acurity beat guidance as it boosted annual profit 55 percent, and said it anticipated growth in public sector funding due to capacity constraints for elective surgery in state-run hospitals.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news