Abano Healthcare is considering a possible capital return to shareholders early next year after selling its stake in Australasian audiology company National Hearing Care (NHC).Abano managing director Alan Clarke said his company initially invested $15 mil
Abano Healthcare is considering a possible capital return to shareholders early next year after selling its stake in Australasian audiology company National Hearing Care (NHC).
Abano managing director Alan Clarke said his company initially invested $15 million for its shareholding in NHC and now expected to receive more than $26m in cash after NHC debt repayment, sale costs and closing adjustments.
Some of the proceeds from the NHC shareholding sale would be invested in Abano's growth sectors, including dental networks in this country and Australia, audiology networks in Australia and Asia and the radiology sector in New Zealand, Mr Clarke said today.
"However, given the size of the capital return from the NHC sale, the board is currently reviewing options to return capital to shareholders, including the previously indicated on market share buy-back."
Cash proceeds were expected in late December and any further return of capital would be implemented in the new calendar year.
NHC acquired Bay Audiology from Abano in November 2009. As part of the Bay transaction, Abano and interests associated with Bay founder Peter Hutson acquired a shareholding of about 13 percent in NHC on a 50:50 basis, for $30m.
Today, Crescent Capital announced the sale of all of NHC to Amplifon Group for $A460m ($NZ601.9m) on a debt free basis, conditional on regulatory approvals.
Abano said that as part of the transaction, its joint shareholding would be sold for about $A58m, before repayment of NHC's enterprise debt, sale costs and closing adjustments.
