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 Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news