KEY POINTS:
Takeover target Abano Healthcare has reaffirmed its profit guidance and its recommendation that shareholders reject Crescent Capital Partners' $5.20 bid offer.
Yesterday Abano said it expected an after tax-profit of $7.9 million in 2008 and took the unusual step of releasing its 2009 forecast predicting an after tax profit of at least $10.5 million.
Abano board chairwoman Alison Paterson said that since the release of the target company statement in January there had been a change in international economic circumstances but the healthcare market remained firm.
"The healthcare market is generally steady since healthcare is not a discretionary purchasing activity, and therefore external factors have not changed the fundamentals and growth prospects of Abano."
The board said the Crescent offer was "well below the current healthcare multiples being paid in New Zealand and Australia".
Australian private equity player Crescent put in its bid for Abano in December after Masthead Portfolio failed to gain 50 per cent of the company in its offer.
Masthead has since sold its 19.9 per cent stake to Healthcare Industries - a group of Bay of Plenty Audiologists which owns part of Abano company Bay Audiology - blocking Crescent from obtaining a 90 per cent stake.
Abano shares closed up 12c at $4.95.
