Media Release
Friday, 22 July 2005
Abano Announces Details Of Share Buyback
Abano Healthcare Group today released details of the $10 million capital return to shareholders, following the sale of
Abano’s aged care business, ElderCare.
Abano is offering to purchase, on a pro-rata basis, one share out of every six shares held by each shareholder on the 5
August 2005, at a price of $2.20 per share. The share buyback remains conditional on certain minimum threshold
shareholder acceptances.
The capital return was first announced in late May, when the company signed a conditional agreement to sell ElderCare to
Macquarie Bank for NZ$63.5 million, and was confirmed following shareholder approval of the sale at a special meeting in
July.
The $10 million cash return is the amount of the capital gain that was realised on the sale of ElderCare, and will be
made by way of an off-market pro-rata voluntary share buyback. The offer is open to people holding shares in Abano as at
5 August 2005, and will close on 26 August 2005.
The maximum number of shares that Abano may take up under this offer is 4,517,572, and assuming all shareholders take up
the Offer, shares on issue will be reduced from 27,105,432 to 22,587,860.
Chairman of Abano, Mr Jim Syme said: “This is the most tax effective method available to us to return capital to
shareholders.
“Following the cash return, the Group will still have sufficient funds to invest in a number of new and exciting
healthcare opportunities, including the 70 percent acquisition of Bay Audiology” As previously announced, Abano will
invest $21million in Bay Audiology for a 70 percent shareholding. The remaining 30 percent will continue to be held by
Bay’s three founding clinical directors and after a five year period, Abano may acquire their shareholdings through a
put and call option, based on a pre-determined price formula relating to Bay Audiology’s future earnings, subject to a
minimum floor price of $9 million.
This acquisition is subject to shareholder approval at Abano’s annual meeting to be held in September 2005, and is in
addition to the two new investment opportunities in the diagnostics and rehabilitation sectors, as announced at the
special meeting of shareholders on 6 July 2005.
ENDS
www.abanohealthcare.co.nz
Notes to Editors:
Abano Healthcare Group is New Zealand’s leading listed specialist healthcare investor and operator, with businesses in
three sectors – rehabilitation, diagnostics and dental.
Following the acquisition of 70 percent of Bay Audiology in October 2005, Abano will also operate in the Audiology
sector.
Existing subsidiary entities include:
- Abano Rehabilitation - Burtons Healthcare, Health Partners, Ranworth Healthcare
- Abano Diagnostics - Medical Laboratory Wellington, Nelson Diagnostic Laboratories, Ascot Radiology (40 percent)
- Abano Dental - Lumino Care Dental and the Auckland Dental Group
More information on Abano Healthcare Group is available at www.abanohealthcare.co.nz