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

 

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news