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

 


$6.50 a share takeover offer for Acurity

NZX and Media Release final

Connor Healthcare launches $6.50 a share takeover offer for Acurity Health Group

Connor Healthcare Limited (Connor), a company jointly established by the two principal shareholders in Acurity, has today issued a takeover notice to acquire the balance of the shares it does not own in the listed private healthcare provider at $6.50 per share.

The all-cash offer represents a premium of 24% above the closing price on the NZX Main Board of $5.25 on 25 July 2014 of Acurity’s shares.

Connor’s spokesman Mark Stewart says the offer will be attractive to Acurity’s shareholders who have seen meagre total returns over the last four years.

“Acurity faces formidable challenges including considerable expenditure estimated at approximately $50 million (Forsyth Barr research report dated 19 May 2014) to meet the earthquake code requirements at its flagship hospital in Wellington. This capital expenditure represents between $2.00 and $3.00 per share purely to maintain the existing capacity at the hospital.”

Acurity’s shares are illiquid, and largely neglected by institutional investors who would otherwise stimulate investor interest and be a creative force for change. These factors, along with the fact that any significant capital expenditure will only generate acceptable returns in the long term, have lead the majority shareholders to the view that it is in Acurity’s best interest for it to be privatised.

“Connor believes its offer, at a premium of 24% to the 30-day volume weighted average price (VWAP) is the highest price Acurity shares have traded at in four years, will be compelling to Acurity shareholders.”

The main points of the offer are:
• Cash of $6.50 per share for all the fully paid ordinary shares of Acurity
• The offer price represents a 24% premium to the 30 day VWAP
• The offer price represents a 24% premium to the closing price of Acurity’s shares on the NZX Main Board on 25 July 2014
• It provides an opportunity for shareholders to realise cash for their infrequently traded shares
Connor is a company that will be 75% owned by Austron (a company jointly owned by the Royston Hospital Trust Board and interests associated with the Stewart family of Christchurch) and 25% owned by Sydney-based Evolution Healthcare (NZ) Pty Limited when the takeover offer is satisfied.

Austron and associated parties currently hold 59.07% of the shares in Acurity and Evolution controls 11.7 % of its shares.

The takeover offer, which is subject to conditions set out in the Takeover Notice including a 90% minimum acceptance condition and approval from the Overseas Investment Office, is expected to be sent to Acurity shareholders on 26 August 2014.

About Evolution Healthcare
Evolution is a leading provider of healthcare services in Australia and New Zealand. We focus on attracting and training the best staff, partnering with leading medical professionals and healthcare providers and investing in modern private healthcare facilities to offer our patients excellence in healthcare. Evolution separately owns and operates Shellharbour Private, South Coast Private, Boulcott, Canberra Private and Waratah Private hospitals.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news