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With his $5-a-share partial takeover offer for Abano Healthcare now dead in the water, Masthead's Mark Stewart is considering upping the ante with a full takeover of his own.
Australian private equity firm Crescent Capital Partners topped Masthead's bid for 51 per cent of Abano with a $5.20-a-share offer for the whole company, having already purchased Rotorua Energy Charitable Trust's 10.9 per cent stake at $5.15 a share.
While Stewart acknowledged Masthead's offer was now "a dead duck", it was still very much in the game due to its 19.9 per cent stake, for which it paid $1.55 a share.
"We've done reasonably well, but with these deals nothing happens until there's money in the bank," Stewart said yesterday.
"We're contemplating our position.
"I was going to put $35 million into this business, obviously I've got to put a full takeover offer on the table if I want to go any further, so that's suddenly gone from $35 million to $70 million or whatever. That's something I need to think wisely about."
Crescent's offer came as something of a surprise as it was understood to have withdrawn from the due diligence some time ago. The Business Herald understands the company had not enjoyed an easy relationship with Abano's board.
Abano's board, which has staunchly opposed Masthead's offers, including its initial $3.85 bid, has said it won't recommend Crescent's offer, but is "content" for it to be presented to shareholders.
Abano's shares have been on an upward trajectory since it made a strategic move away from aged care and into clinical services, particularly audiology and dental care.
