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

 


Acurity Directors Support Sweetened Takeover Offer

NZX and Media Release

26 August 2014

Acurity Directors Unanimously Support Sweetened Takeover Offer

Connor Healthcare Limited (Connor) today advised that it had increased its takeover offer for Acurity to $7.25 per share from $6.50 per share.

The offer, which is 38% above the closing price of Acurity shares on the 25th of July when takeover offer was announced, falls well within the Independent Adviser’s valuation range released today along with the Target Company Statement. Importantly, it has the unanimous support of the Independent Directors of Acurity, who have indicated that they will accept the Connor offer, in the absence of a higher value alternative proposal.

Connor is a company jointly established by the two principal shareholders in Acurity, which together own 70.77% of the shares in the NZX listed private hospital operator.

Connor’s spokesman Mark Stewart said: “We are very pleased that Acurity’s Independent Directors have unanimously endorsed our revised offer. It was important for us to get their support as they fully understand the factors that influence the value of the Company.

“We believe the offer price to be very attractive to shareholders who have seen meagre total returns over the last four years. We believe that the lack of liquidity in the shares, the required capital expenditure on Wakefield hospital, the costs associated with the NZX listing and the lack of scale and institutional shareholder support means that Acurity is best suited to being an unlisted private company.”

Acurity recently indicated that it expected to spend between $45 million and $50 million to rebuild its flagship Wakefield hospital to meet earthquake code requirements. This capital expenditure represents between $2.00 and $3.00 per share to maintain the existing capacity at the hospital. A further $10 million is required to upgrade the current Wakefield Medical Consultant Centre taking the total estimated capital expenditure required to $60 million.

The takeover offer, which opens today, is subject to conditions including a 90% minimum acceptance condition and approvals from the Overseas Investment Office and the Commerce Commission.


About Connor Healthcare

Connor Healthcare is a company established by two existing shareholders in Acurity: Austron Limited and Sydney-based Evolution Healthcare (NZ) Pty Limited (which will own 25% of Connor on completion of the takeover).

Austron is an incorporated joint venture between the Royston Hospital Trust Board and interests associated with the Stewart Family of Christchurch.

Evolution is a leading provider of healthcare services in Australia and New Zealand. Evolution’s focus is to invest in private healthcare facilities, attract and train the best staff and partner with leading healthcare providers to offer 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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news