Recapitalisation Programme Yields $10.3 Million To Date
Auckland – November 21, 2001 – Listed healthcare provider, ElderCare New Zealand (NZSE: ELD), today announced that there
had been a 95.5 percent take-up of its renounceable rights issue, raising $3.3 million.
The new equity was raised on the basis of one new ordinary share at 16.5 cents per share for every 7.5 shares held at
the record date of Friday 12 October 2001. The company issued 20,143,188 new ordinary shares, representing 11.8% of the
total shares then on issue, at a nominal value of $3,323,626. This leaves the Company with a total of 190,374,395
ordinary shares now on issue.
ABN AMRO Craigs, who organised the renounceable rights issue, reported strong interest and buying from both
institutional investors and existing shareholders.
In conjunction with other capital raising initiatives recently approved by shareholders ElderCare has now raised $10.3
million in new equity since its Annual Meeting. The capital injections have further strengthened the Group’s financial
position by increasing the level of equity in the business, in readiness for its next round of acquisitions. They have
also enabled the Company to reduce overall Group debt to less than $29 million, as forecast at the meeting.
“We’re delighted with the positive response to the rights issue and the market’s acceptance of the Group’s direction as
New Zealand’s largest listed medical and healthcare operator,” said Chief Executive Officer, Alan Clarke. “The
recapitalisation leaves us in a strong financial position to continue with our strategy of expanding on our base of
retirement, rehabilitation and medical diagnostic practices.”
ElderCare expects to receive a further $3.6 million from land sales by the beginning of April 2002.
ENDS
Company Background
ElderCare New Zealand Limited (NZSE: ELD) is a medical and healthcare service provider. The company owns a substantial
portfolio of nursing homes, assisted living and assessment and rehabilitation facilities throughout New Zealand. These
offer an array of specialised services to cater for the healthcare needs of a broad range of New Zealanders. The company
recently expanded its medical services, entering the diagnostic medicine market, and announced it had reached agreement
to purchase 100% of the shares in Medical Laboratory Wellington and Nelson Diagnostic Laboratories, positioning it as
New Zealand’s largest listed medical and healthcare group.