November 2, 2004
Calan Enters Into Option Agreement
Statement made by Miles Wentworth, Chief Executive Officer,
Calan Healthcare Properties Limited
Calan Healthcare Properties Trust (NZX Code: CHP) today announced that they had entered into an Option Agreement with
listed healthcare investor Abano Healthcare Group Limited (NZX Code: ABA) for the purchase of Calan’s 20% equity
interest in Ascot Radiology Limited.
The Option Agreement gives Abano Healthcare Group Limited (Abano) the right to acquire the Trusts interest in Ascot
Radiology in April 2007 for a price determined by reference to an earnout formula. The earnout formula is linked to the
practices profitability.
The sale price (depending on actual profitability achieved) could range from $500,000 to in excess of $1 million. Should
the profitability not achieve a pre-agreed level either party has the right to terminate the option agreement. Based on
Ascot Radiology’s current management forecast for the year to 31 March 2007, the sale price for the Trust would be $1
million.
The current book value of this investment is $100,000.
Chief Executive Miles Wentworth said “The entering into this option agreement could provide us with a premium price and
a significant gain on sale for the Trust. In addition to these benefits, this is in line with our stated strategy of
exiting non-revenue producing assets”.
ENDS