NZX and Media Release final
Connor Healthcare launches $6.50 a share takeover offer for Acurity Health Group
Connor Healthcare Limited (Connor), a company jointly established by the two principal shareholders in Acurity, has
today issued a takeover notice to acquire the balance of the shares it does not own in the listed private healthcare
provider at $6.50 per share.
The all-cash offer represents a premium of 24% above the closing price on the NZX Main Board of $5.25 on 25 July 2014 of
Acurity’s shares.
Connor’s spokesman Mark Stewart says the offer will be attractive to Acurity’s shareholders who have seen meagre total
returns over the last four years.
“Acurity faces formidable challenges including considerable expenditure estimated at approximately $50 million (Forsyth
Barr research report dated 19 May 2014) to meet the earthquake code requirements at its flagship hospital in Wellington.
This capital expenditure represents between $2.00 and $3.00 per share purely to maintain the existing capacity at the
hospital.”
Acurity’s shares are illiquid, and largely neglected by institutional investors who would otherwise stimulate investor
interest and be a creative force for change. These factors, along with the fact that any significant capital expenditure
will only generate acceptable returns in the long term, have lead the majority shareholders to the view that it is in
Acurity’s best interest for it to be privatised.
“Connor believes its offer, at a premium of 24% to the 30-day volume weighted average price (VWAP) is the highest price
Acurity shares have traded at in four years, will be compelling to Acurity shareholders.”
The main points of the offer are:
• Cash of $6.50 per share for all the fully paid ordinary shares of Acurity
• The offer price represents a 24% premium to the 30 day VWAP
• The offer price represents a 24% premium to the closing price of Acurity’s shares on the NZX Main Board on 25
July 2014
• It provides an opportunity for shareholders to realise cash for their infrequently traded shares
Connor is a company that will be 75% owned by Austron (a company jointly owned by the Royston Hospital Trust Board and
interests associated with the Stewart family of Christchurch) and 25% owned by Sydney-based Evolution Healthcare (NZ)
Pty Limited when the takeover offer is satisfied.
Austron and associated parties currently hold 59.07% of the shares in Acurity and Evolution controls 11.7 % of its
shares.
The takeover offer, which is subject to conditions set out in the Takeover Notice including a 90% minimum acceptance
condition and approval from the Overseas Investment Office, is expected to be sent to Acurity shareholders on 26 August
2014.
About Evolution Healthcare
Evolution is a leading provider of healthcare services in Australia and New Zealand. We focus on attracting and training
the best staff, partnering with leading medical professionals and healthcare providers and investing in modern private
healthcare facilities to offer our patients excellence in healthcare. Evolution separately owns and operates
Shellharbour Private, South Coast Private, Boulcott, Canberra Private and Waratah Private hospitals.