KEY POINTS:
The proposed takeover of an Auckland healthcare firm could mean a $9.3 million windfall for the Rotorua Energy Charitable Trust.
But trust chief executive Stuart Burns says it's too early to say whether the trust will cash in its 10.5 per cent shareholding in Abano Healthcare as he hasn't seen any of the crucial paperwork.
The Rotorua trust is the second largest shareholder of the healthcare firm which has received notice from Masthead Portfolios of a proposed partial takeover.
Masthead's Christchurch-based directors want to lift their stake in Abano from nearly 20 per cent to a 51 per cent controlling holding.
They are offering to buy shares in Abano from existing shareholders for $3.85 a share.
In recent weeks, Abano shares have traded on the sharemarket for between $3.70 and $3.90 - up significantly on last year when shares sold for $1.55. Trading notices show the Rotorua trust sold 122,055 Abano shares in February and 250,000 shares at at average price of $2.73 per share between October 16 and February 1.
The trust sold a further 416,457 shares at $1.55 per share to Masthead Portfolios last year.
Terms surrounding the takeover were disclosed to the market last week and Masthead has mailed takeover documents to shareholders this week.
In Auckland yesterday, Mr Burns said he had not seen any formal takeover documents or the independent valuation report.
Until he did, it was too early to say whether the trust would look to sell its shares to Masthead.
"We'll always seriously consider any offer but the process has to be followed. Until we see the documents, we don't know if the offer of $3.85 is a reasonable offer or not."
However, he indicated Abano's share value may not have yet reached its peak.
"We've always said we see the long-term value in the company, the same way Masthead must see that long-term value."
Established in 1994, the Rotorua trust is one of the largest charitable trusts in New Zealand with an original asset base of $32 million which has grown to an investment portfolio worth $150 million today.
The trust has invested more than $50 million back into the local community. Its investments have included $13 million to kick-start the Rotorua Energy Events Centre project.
- DAILY POST
