Metlifecare, the retirement village operator, sold shares to institutional and experienced investors at a 7.1 per cent discount as part of its capital raising, while majority owner Retirement Villages New Zealand sold down its stake to just over half.
The primary placement raised the $40 million sought in new capital and Retirement Villages NZ's sale went for $59.2 million at a price of $2.10 a share, a discount to the $2.26 price the stock traded at before entering a halt for the capital raising, it said in a statement. Retirement Villages NZ has reduced its holding to 51 per cent of Metlifecare.
"Metlifecare's capital and ownership structure review initiatives have now positioned the company to maximise the value of its existing high quality portfolio of retirement villages," chairman Greg Flood said.
"Participation from investors in this offer reflects a strong endorsement of the company and the strategic review initiatives we have undertaken to maximise value for shareholders."
The company plans to raise a further $5.5 million via a share purchase plan, allowing eligible investors to subscribe for up to $15,000 of shares, details of which have yet to be announced.
