Calan revaluation raises ING queries

ING Property Trust is questioning the presentation of takeover target Calan Healthcare's latest property revaluation.

On Friday, Calan said its properties had increased in value by $10.4 million since the last valuation in June.

That pushed up the value of its units by 6c to $1.29 - above the $1.25 a unit ING has said it would offer.

Yesterday, ING said Calan's presentation of the revaluation was inconsistent with Calan's historical practice.

"Calan is trying to blur the lines between gross and net asset values to claim that its asset backing has risen substantially more than it has," said ING Property Trust Management's managing director, Andrew Evans.

Calan had always used the accepted net tangible assets (NTA) valuation methodology as a fair way of assessing true worth.

"It is, therefore, confusing for Calan's investors and those looking at buying units, to focus on the 'gross asset value' of $1.29 a unit, a metric Calan has never historically used," Evans said.

On an NTA basis, the independent valuers revised Calan's value to $1.25 a unit as at January 31, from $1.19 in June - in line with ING's offer.

The valuations were prepared by CB Richard Ellis, Colliers International and DTZ New Zealand.

ING expects to dispatch its $1.25 a unit offer, comprising 63c cash plus 0.528 ING Property Trust units, next week.

Calan's independent directors have so far urged shareholders to hold fire on selling pending an independent valuation of the offer by Ferrier Hodgson.

- NZPA