$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.