Acurity Health says 'don't sell' as offer 13% below valuation
The $6-a-share offer by its two biggest shareholders is not enough, the independent adviser's report says.
BUSINESSDESK: Acurity Health Group, the private hospital operator formerly known as Wakefield Health, is worth at least 13% more than the $6-a-share offer by its two biggest shareholders, the independent adviser's report says.
The board of Acurity unanimously recommends shareholders don't accept the offer, which is "materially below the independent adviser's assessed value range for Acurity shares of $6.92 to $7.88", they say.
The caveat on that is if investors have a short-term goal of realising cash immediately.
"Consistent with this recommendation, Acurity's chief executive officer and those independent directors who have an interest in Acurity shares have decided not to accept Austron's offer," the company says.
The Stewart family and Royston Hospital Trust Board each own 19.99% of Wakefield and have agreement with AMP Capital Investors (New Zealand) to acquire enough of the fund manager’s holding to hold 50.01% via their JV investment vehicle, Austron.
"The independent directors consider Acurity to have excellent medium- to long-term prospects and see Austron's offer as a significant commitment to and measure of confidence in those prospects from Royston and Medusa," it said.
Acurity flagged a small increase in annual earnings before interest, tax, depreciation and amortisation, with net profit in line with the 2012 result of $6.5 million.
Earlier today Austron said it would agree to lift pool of directors' fees to $420,000 from $400,000, the first such increase in four years.
The independent adviser's report and target company statement have been mailed to shareholders.
Shares in Acurity were unchanged at $5.70 today, and have gained 19% this year.
Paul McBeth
Fri, 17 Aug 2012
Fri, 17 Aug 2012
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Acurity Health says 'don't sell' as offer 13% below valuation
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