Calan sells $7.2m stake in Ascot

Calan Healthcare has sold its stake in Ascot Hospital and Clinics for $7.2 million and will use the money to reduce borrowings.

By repaying debt, Calan would lift its pre-tax earnings by $440,000 a year, the company said in a statement. Calan made a $250,000 gain on the sale.

A majority shareholder in Ascot Hospital had bought the stake, with settlement on May 9, Calan said in a statement to NZX. "The sale concludes Calan's repositioning strategy over the past 24 months that has seen it realise more than $25 million of non revenue producing assets," the firm said. The realisation of those assets had transformed the company, Calan said. Future growth would be achieved by strategic acquisition in the healthcare property sector.

It also increased its quarterly distribution to 2.15c, effective from the December 2004 quarter.

That brought the Calan Healthcare full distribution to June 30 to 8.45c, and 8.6c on an annualised basis.

At market close, Calan shares were trading at 98c, up 1c, having ranged between 84c and $1.01 in the past year.