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

 

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>