News Release
Masthead Portfolios Cash Offer for Abano Healthcare Opens
10 October 2007 – Masthead Portfolios Ltd advises that its partial takeover offer to all shareholders in Abano
Healthcare Group Ltd opens today.
The $3.85 a share cash offer is open for 30 days following today’s offer date. Masthead, which currently owns 19.9 per
cent of the shares on issue in Abano, is seeking to increase its holding to 51 per cent. As required by the Takeovers
Code, the offer is conditional on achieving sufficient acceptances to take Masthead’s shareholding to more than 50 per
cent.
Masthead director Mark Stewart said based on the information available the $3.85 a share offer fairly values Abano. At
the time the notice of offer was delivered on the 13th of September 2007 the offer represented a:
208% premium to the Abano price of $1.25 on 10th October 2006
71.1% premium to the 12 month average Abano price of $2.25
13.6% premium to Abano’s last closing price of $3.39
Mr Stewart acknowledged that the Abano share price had risen sharply following the announcement by Abano early in the
week that its earnings outlook had improved and that other parties had expressed interest in the company.
“As the largest shareholder in Abano we have a strong commercial interest in any outcome. We are not adverse to any
share value appreciation if it is justifiable and sustainable. But it would appear that there is a significant
speculative element to the increase and query how meaningful the price rise is given the light trading volumes.
Moreover, whilst other parties may have stated an interest in Abano there is no certainty that a competing buyer will
emerge and then be successful.
“We believe that Abano is a good company and are keen to see the Independent Adviser’s report on the merits of the
offer. We have also contacted Abano to make it clear that Masthead expects to be provided the same information as is
provided to any other prospective buyer.”
Mr Stewart noted that Masthead’s price was real and on the table. Masthead had a strong investment track record and said
that if Masthead was to be successful in moving to a majority shareholding in Abano, it could use this experience to
further complement Abano’s existing skills.
ENDS