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Healthcare Partners reaffirms $10 offer for Abano shares

Healthcare Partners reaffirms $10 offer for Abano shares


25 November 2016 – Healthcare Partners has today issued a new notice of intention to make a partial takeover offer for 50.01% of Abano Healthcare at $10.00 per share. The notice of intention dated 7 November 2016 has been withdrawn.

“We believe our $10.00 per share price is attractive. It represents a 26.6% premium to the 3 November $7.90 share price prior to our advice of our intention to make an offer for Abano,” says Peter Hutson on behalf of Healthcare Partners today.

“We have listened and learned from our engagement with Abano in 2013. Our main learning was that shareholders wanted to consider a formal offer. We are now making a formal offer. We are confident with our analysis of the company and seek to work collaboratively with the Board to get this offer in front of shareholders.

“In our Notice of Intention we have outlined our approach should the Offer be successful and Healthcare Partners becomes the 50.01% owner of Abano. We will stop further acquisitions by Abano for the medium term and focus on improving the performance of the existing dental practices. Once cash flow generation has improved, it is our intention to continue Abano's acquisition led growth. We will reduce Abano’s reliance on asset sales, significant debt expansion or equity raisings to fund the growth. We will also continue Abano’s existing dividend policy and subject to relevant factors at the time, the annual dividend paid will be between 50-70% of Underlying Net Profit After Tax. We also have a strong focus on creating and protecting a rewarding team environment for staff.

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“We continue to believe in the potential of Abano, and are making this offer because we believe the performance of the company can be improved under our leadership.

“Healthcare Partners will be providing shareholders with further details of our offer over the coming weeks,” says Healthcare Partners director, Peter Hutson.

Peter and Anya Hutson founded Bay Audiology, 70% of which was bought by Abano. They then founded Bay International, an audiology business primarily operating in Australia. This was started from scratch and Abano sold its 50% to Healthcare Partners this year for $32 million. Bay International continues to go from strength to strength. James Reeves developed a large financial services business and an optometry business which is now part of OPSM. All three are proven and successful healthcare operators and directors.


ENDS

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