Metlifecare, the retirement home operator, is to seek up to $45.5 million in new capital, while 82 per cent-owner Retirement Village Group will sell down its stake.
The company posted details of its recent strategic review on the NZX today, saying the primary equity raising was to provide "financial headroom for growth", while RVG's secondary offering of $50 million to $70 million would reduce its holding to between 50 and 55 per cent.
The changes will also see the appointment of three independent directors, including possibly an independent chair, three RVG directors, and the managing director.
Once an initial $40 million share sale to institutional and experienced investors, and RVG's sell-down are completed, a further $5.5 million shares will be offered in a share purchase plan, details of which are yet to come.
The moves reflect a combination of investment opportunities in the retirement village sector, a $10 million debt reduction, and a desire to see the shares more widely owned and traded, with at present some 13 shareholders controlling almost the entire register.