Metlifecare sets the rules

Listed retirement village company Metlifecare says "qualified" potential buyers of founder Cliff Cook's 25 per cent shareholding will be allowed to do due diligence on the company.

Cook's private company, Private Healthcare, has engaged investment bank Goldman Sachs JBWere as adviser.

Metlifecare chairman Peter Fitzsimmons said the company had agreed to support the bank in the process to enable qualified bidders to get adequate information to make offers. He did not define "qualified".

Appropriate confidentiality and related undertakings would be required as a pre-requisite to any due diligence, he said.

A purchase would trigger a full takeover offer under New Zealand rules.

"The board has put in place a process to properly deal with all the issues arising from the potential sale of Cliff Cook's shareholding," Fitzsimmons said.

"As part of that process, we are proactively working with Private Healthcare to make sure there are no impediments to all shareholders having the opportunity of realising the maximum price."

Tipped as possible bidders are property group FKP; retirement facility developer Primelife and its shareholder, investment bank Babcock & Brown; and private equity investor Pacific Equity Partners. All are from Australia.

As well as his stake, a "drag-along" agreement means Cook can also offer the 35 per cent stake held by Todd Capital.

- Staff reporter