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

 

Abano Announces $35 Million Capital Raising

Abano Announces $35 Million Capital Raising

Listed healthcare investor, Abano Healthcare Group Limited (NZX:ABA), advises that it intends to raise approximately $35 million through a fully underwritten 1 for 5 pro-rata renounceable rights offer and a shortfall bookbuild, to enable Abano to accelerate the growth of its trans-Tasman dental group, particularly in the Australian market.

Abano’s strategy is to invest in healthcare businesses which it is able to scale and grow to gain the benefits of size, reputation and branding. The company’s primary focus is on the $11-billion transTasman dental market and Abano Dental is the second largest dental group in the region and one of the fastest growing.

Corporate groups own less than 10% of total dental practices in the trans-Tasman region and there is growing acceptance and popularity of the corporate model amongst dentists. Combined with Abano’s positive reputation and workplace culture, this has seen the number and size of practices in Abano’s acquisition pipeline increase, and now exceed, previous expectations. The opportunity for Abano to continue to grow via its acquisition strategy, particularly in Australia, is significant.

Abano’s policy is to ensure an efficient balance sheet and the employment of capital in its businesses that will achieve Abano’s long term strategic goals. To enable Abano to respond to this increased acquisition opportunity, the Board has concluded that undertaking a rights offer to raise new equity is the best option for the company and its shareholders, and provides an equal opportunity for all eligible shareholders to participate. Abano’s Directors intend to take up all their, and their associated interests’, rights.

Under the offer, eligible shareholders are entitled (but not obliged) to subscribe for 1 new share for every 5 existing shares held as at 5.00pm on the record date of 3 August 2017, at an issue price of $8.15 per new share. This represents a 13.3% discount to the dividend adjusted closing price of $9.40 per share, based on the 25 July 2017 closing price.

The net proceeds of the offer will be used to provide additional headroom and flexibility for Abano to respond to the increased acquisition opportunity and step up its growth plans in the trans-Tasman dental market, particularly in Australia.

Full details of the offer will be sent to eligible shareholders and are available on Abano’s website www.abano.co.nz/2017rightsoffer.

Abano has appointed Forsyth Barr Limited as lead manager of the capital raising, with the offer fully underwritten by Forsyth Barr Group Limited.

FY17 Dividend Reinvestment Plan Suspended

Abano remains committed to its existing dividend policy for the foreseeable future, which aims to provide both capital growth as well as an attractive and increasing dividend payment.

26 July 2017

Company Announcement

Due to the timing of the offer, Abano’s Dividend Reinvestment Plan (DRP) has been suspended in respect of the final dividend for the six months ended 31 May 2017. Shareholders who have elected to participate in the DRP will be paid the dividend on 18 August 2017 either by cheque or, where provided, to the nominated bank account. Shareholders who normally participate in the DRP, who are eligible shareholders, may wish to consider the opportunity to use the cash dividend to take up their rights and subscribe for shares under the offer.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO:

New Report: Waitākere Kauri - Look After It, Or Lose It

With no cure for kauri dieback disease and treatment options still being trialled, the Auckland region faces a very real threat – take urgent action in the Waitākere Ranges or risk losing kauri from our forests altogether. More>>

ALSO: