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


Acurity board tells shareholders to wait for takeover report

Acurity board tells shareholders to sit tight as Connor Healthcare reviews takeover

By Suze Metherell

Aug. 20 (BusinessDesk) - Acurity Healthcare Group's independent directors committee says Connor Healthcare is reviewing its takeover offer for the 29 percent of the company it doesn't own, including the price, and that shareholders should wait for the committee's report before trading shares.

Connor, which is made up of principal Acurity shareholders the Stewart family, Royston Hospital Trust Board, and Evolution Healthcare, announced plans for a cash takeover bid on July 28, offering $6.50 per share and valuing the private hospital operator at $112.2 million, saying the firm faces a big struggle lifting its flagship Wellington hospital up to earthquake code. Shares of Acurity were up 0.8 percent to $6.60 today.

Acurity's committee of independent directors today said it "understands that Connor is reviewing its offer terms (including, potentially, price) and, accordingly, the committee recommends that shareholders do not deal with their shares until the receive, and consider, the committee's takeover response documents."

Connor touted the cost of upgrading the hospital as too onerous for a public company to undertake by saying it would be better placed to absorb the cost than a publicly listed company.

Earlier this month, chief executive Ian England announced the appointment of 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 were available, a recent review suggested the upgrade would cost between $45 million and $50 million, with a further $10 million needed to replace the current Wakefield Medical Consultant Centre.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news