KEY POINTS:
Australian investment firm Babcock & Brown took control of 12.5 per cent stake of Ryman Healthcare yesterday, but downplayed the prospect of a takeover bid.
Any takeover of the retirement village operator could prove difficult because of the large parcels owned by other shareholders. But Ryman shares still rose 30c to $2.40.
"We want to be big enough that the board's going to answer our phone calls when we call, but until we learn a lot more about the company and its major shareholders and the board and management we're quite happy to stay at this level," said Andy Tyndale, Sydney-based head of retirement living and aged care at Babcock & Brown.
"And frankly I'm not yet sure what value we can add to it because if it's not broken you don't want to go and fix it. It's a really well run company."
In a deal that saw Ngai Tahu's share in Ryman halved, Babcock & Brown paid $63 million, or $2.10 a share, for a 6 per cent stake in the company, leaving the South Island iwi with a 6.5 per cent stake. The two investors have given each other first option over their shareholdings should one decide to sell. And they have agreed to vote with their shares in the same way, effectively creating a 12.5 per cent block of shares.
"We treat the 12.5 per cent as one stake so it increases our strategic influence," said Tyndale.
"Part of it's a defensive stake and nobody else can buy it if we have 12.5 per cent."
Babcock & Brown owns five retirement villages in New Zealand and has large interests in the aged care sector in Australia though its part-owned Prime Living Trust.
"We really like Ryman. We think it's the best-run company in the retirement and aged care business in New Zealand by far," said Tyndale.
ABN Amro Craigs equity analyst Michelle Perkins said any takeover was unlikely because the stock was tightly held.
Emerald Capital, controlled by businesswoman Dianne Foreman and others, owns 16 per cent of Ryman, fund manager Axa owns 8.8 per cent, and the Hickman family which founded Ryman owns 7.2 per cent.
