Abano bidders hint at 100% offer and raise price

Peter Hutson of Healthcare Partners
abaadd to my Stocks
ABA Abano Healthcare
$8.900
0.000 0.000%
Volume: 1,200

Healthcare Partners Holdings says it will consider mounting a full takeover bid for dental services group Abano Healthcare if it can get access to the company's books, and has raised its bid for a controlling stake in the meantime.

Abano's cornerstone shareholders Anya and Peter Hutson and James Reeves, who are mounting their takeover via the Healthcare Partners entity, have written to shareholders saying they will entertain making a full takeover if Abano's board will provide access to information to let them do due diligence. While it waits for a response, Healthcare has increased its partial takeover offer to $10 a share, which takes account of the 16 cent dividend Abano paid last month.

It said if its offer seeking a 50.01% stake is successful it will allow due diligence and consider a 100% offer.

"We did not make a 100% offer because the Abano board has historically been unwilling to provide access to due diligence information, which we currently require to make a 100% offer," Healthcare Partners said. "Whether or not our partial offer is successful, we invite the board of Abano to open a due diligence process for us and all other interested parties. We can then explore the possibility of making a 100% offer."

Healthcare Partners has attracted 1% of Abano's shares since mounting its offer. The Hutsons and Reeves already own about 19%, meaning acceptances would probably be scaled if they achieve control. The offer closes on March 3.

They launched the offer saying they want to improve the company's performance by halting acquisitions in the medium term in order to reduce debt, while improving the dental practices' operations. They would also install three new directors.

Abano's board has recommended shareholders reject the offer, and used Healthcare Partner's dividend to cover some of the costs associated with the bid.

Fisher Funds-managed investment firm Kingfish is a shareholder in Abano, and in its December quarterly update said the takeover was "opportunistic" and it would prefer the company "remain listed and pursue its existing strategy unencumbered".

Abano's valuation range by independent adviser Grant Samuel was criticised by Healthcare Partners as using unrealistic assumptions, and was later revised to reflect shares issued as part of management's long-term incentive scheme, putting a fair value of between $9.92 and $11.93, from $9.95 to $11.96.

The company's shares were unchanged at $8.70 today.

(BusinessDesk)


3 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

3 Comments & Questions

Commenter icon key: Subscriber Verified

Suspect the Abano board are smart enough to see through this primitive tactic...

Reply
Share
  • 2
  • 0

Easy bluff for Abano to call. They simply should give these guys access to books and say bid or get off the pot. Where's the harm unless Absno is hiding something. After all Abano's rhetoric to date has been that they want a 100% bid not a partial bid and Hutson is their largest shareholder.

Reply
Share
  • 0
  • 0

It only makes sense to me if HCP's backers aren't confident enough in HCP management to put up the money for the other half? Probably best if HCP sell their holding to a bigger more friendly fish, take a nice profit and move on here,

Reply
Share
  • 1
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7048 0.0004 0.06%
AUD 0.9244 0.0015 0.16%
EUR 0.6487 -0.0007 -0.11%
GBP 0.5619 -0.0009 -0.16%
HKD 5.4738 0.0029 0.05%
JPY 77.6680 -0.1840 -0.24%

Commods

Commodity Price Change Time
Gold Index 1248.5 1.160 2017-03-24T00:
Oil Brent 50.9 0.270 2017-03-24T00:
Oil Nymex 48.0 0.320 2017-03-24T00:
Silver Index 17.8 0.160 2017-03-24T00:

Indices

Symbol Open High Last %
NZX 50 7073.8 7101.1 7073.8 -0.16%
NASDAQ 5839.3 5858.9 5817.7 0.19%
DAX 11957.6 11987.6 12064.3 -0.96%
DJI 20674.5 20718.3 20656.6 -0.29%
FTSE 7336.8 7336.8 7336.8 -0.82%
HKSE 24235.7 24434.9 24358.3 -0.68%
NI225 19071.2 19086.9 19262.5 -1.44%
ASX 5753.5 5753.5 5753.5 -0.12%