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

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news