KEY POINTS:
A strong performance from newly acquired dental and audiology clinics pushed clinical services firm Abano Healthcare Group to an operating profit of $5 million.
At its annual meeting yesterday the company said it had made earnings before interest, tax depreciation and amortisation (ebitda) of $13.9 million on revenues of $89.5 million.
Among the acquisitions were six new dental clinics for Lumino Dental, and opening or expanding eight clinics in its Bay Audiology network in New Zealand and Australia.
The revised share offer for a partial takeover of Abano by investment company Masthead Portfolios received scant attention at the meeting, and shareholders hoping for more information on the two companies doing due diligence on Abano were disappointed.
Abano chairwoman Alison Paterson repeated advice to shareholders not to sell, saying the price was too low, and two companies had signed due diligence agreements.
She said Masthead had asked for access to do due diligence on the company but had not yet asked to act on it.
Masthead director Mark Stewart had little to say to shareholders about the revised offer. "We put a $5 price on the table and from our perspective that speaks for itself."
He said he had gone to the meeting expecting to find out more about the status of the competing bidders or at least some indication as to the likelihood and timing of any offer.
"The due diligence process has been going on now for nearly two months and a bidder has yet to emerge. Masthead remains the only party that has put cash on the table."
Masthead, the investment vehicle of the Christchurch-based Stewart family, wants to boost its 19.9 per cent stake in Abano to 51 per cent to become majority shareholder.
Last month it offered shareholders $3.85 for a partial takeover of the company, yesterday raising that to $5. Both offers were rejected by the Abano board as too low.
Meanwhile, Abano managing director Alan Clarke said the company would look to Asia to boost the market for its fast-expanding Bay Audiology Group. Abano had done market studies but had not made any buys.
In yesterday's Business Herald, Paterson was quoted as saying three companies had signed due diligence agreements.
She corrected that figure yesterday, saying that of the three companies that had asked to do due diligence, two had signed due diligence agreements.
