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

 


Acurity board backs redevelopment of Wakefield hospital

Acurity board backs redevelopment of Wakefield hospital

By Paul McBeth

Aug. 8 (BusinessDesk) - The board of Acurity Health Group has backed a plan to redevelop its flagship Wakefield hospital in Wellington, an upgrade touted by potential buyers as the biggest hurdle facing the private hospital operator.

Chief executive Ian England told shareholders in Wellington the board resolved to approve the redevelopment, and has appointed a working group made up of specialists, directors and management to define what's needed to bring the hospital up to earthquake code and establish cost processes. While no definite figures are available, a recent review suggests the upgrade would cost between $45 million and $50 million, with a further $10 million needed to replace the current Wakefield Medical Consultant Centre.

"Management conducted a cost benefit review looking at this cost of strengthening project versus a new build hospital on the current site," England said. "Over the medium to long term the analysis showed that a new facility hospital would represent better value due to operational efficiencies and reduced disruption resulting in lower consequent revenue loss during the on-site works."

The cost of upgrading the hospital has been touted as too onerous for a public company to undertake by Acurity's suitors. Connor Healthcare, an entity set up by principal shareholders the Stewart family, Royston Hospital Trust Board, and Evolution Healthcare, is offering $6.50 a share to buy the 29 percent of the group they don't already own, saying it would be better placed to absorb the cost than a publicly listed company.

England said the development would be funded through Acurity's operating cash flows and banking facilities, with the project likely to take four to six years to complete.

Chairman Alan Isaac said Connor expects to lodge a formal offer in late August, and that the board has hired KordaMentha as independent advisers. The independent directors will make a recommendation on whether to accept the bid in their target company statement, he said.

The shares were unchanged at $6.50 today, and have climbed 19 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news