INDEPENDENT NEWS

Masthead Lifts Cash Offer for Abano to $5.00

Published: Thu 8 Nov 2007 10:54 AM
News Release
Masthead Portfolios Lifts its Cash Offer
for Abano Healthcare to $5.00
8 November 2007 – Masthead Portfolios Ltd today advised that it has increased it partial takeover offer for Abano Healthcare Group Ltd to $5.00 a share.
The revised offer, which is being mailed to all shareholders today, is $1.15 a share higher than Masthead’s previous offer of $3.85 per share and represents a 47 per cent premium to the pre offer price.
Masthead’s Mark Stewart said that the $5.00 a share offer price was in the Independent Adviser’s valuation range. “We sincerely believe that the Abano Board will treat our offer appropriately and with careful and fair consideration. This is not a hostile offer and we believe that if we are successful that we will be able to work with the company to drive further value.”
Masthead’s revised offer of $5.00 a share compares to a closing price yesterday of $4.65. Whilst the Abano share price briefly spiked up on the release of the Target Company Statement, the price has been trading well below the recommended range. If this newly revised offer is unsuccessful, and in the absence of any other bidder, it is highly likely that the Abano share price will significantly drop.
Under its Takeover Notice, Masthead is seeking to acquire shares in Abano to increase its holding to 51 per cent. Masthead is the largest shareholder in Abano with a 19.9 per cent stake. The closing date for the offer is the 29th of November 2007.
ENDS

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