Misleading Statements About Abano Interim Dividend

Healthcare Partners Clarifies Misleading Statements About Abano Interim Dividend

Healthcare Partners has today clarified misleading claims by Abano Healthcare that Healthcare Partners opposes payment of an interim dividend to Abano shareholders.

“Healthcare Partners does not oppose the payment of an interim dividend provided it is in accordance with common market practice. We do not believe the proposal from Abano is in accordance with market practice.

“Healthcare Partners would support an appropriate interim dividend if it was on the basis that the payment is deducted from the $10 offer price for the shares that will be acquired by Healthcare Partners. It is also important that the dividend is not applied to the Dividend Reinvestment Plan. We do not support Abano issuing shares during this takeover process.

“It is open to Abano to make an interim dividend proposal at this time. We are not opposed to considering reasonable terms that do not unduly affect the economics of the offer. The terms of a partial takeover offer have been advised to the market and both parties are now operating under rules relating to variations which are administered by the Takeovers Code.

“We believe this is a very reasonable position that all shareholders will understand and is consistent with market practice. Healthcare Partners’ interests and those of all other shareholders are totally aligned. On the basis of the information available we continue to support the company’s dividend policy.”

Healthcare Partners’ position was provided in writing to both Abano and the Takeovers Panel on 15 November.

If Healthcare Partners is successful in its Offer to become the 50.01% owner of Abano, it intends to sit down with the Board and discuss how to improve the performance of existing dental practices. The targeted operational improvements will allow for a reduction in Abano’s debt and provide sustainable growth moving forward.

Healthcare Partners’ growth strategy is therefore importantly sequential; first grow cash earnings of the existing operations then continue acquisitions to grow the top line. This strategy removes the reliance on asset sales, debt expansion or equity raisings previously used by Abano to fund acquisition growth.

Healthcare Partners consists of three seasoned and successful healthcare operators and directors – Peter Hutson, Anya Hutson, and James Reeves – who through this partial takeover offer for 50.01% seek to help improve Abano’s performance.

Issued by Peter Hutson, Director

on behalf of the directors of Healthcare Partners

-ENDS-

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