KEY POINTS:
Masthead Portfolios remained steadfast on its offer price for control of Abano Healthcare as it mailed the offer to shareholders yesterday.
The $3.85 per share cash offer opened yesterday for 30 days.
Masthead, which owns 19.9 per cent of Abano, is seeking 51 per cent, but its offer price is well below the current market price of $4.40, up another 3c yesterday.
The price shot up 8 per cent on Monday as Abano increased its profit guidance and revealed other parties had expressed interest in the company.
Masthead director Mark Stewart said based on the information available, the $3.85 a share offer fairly valued Abano.
He acknowledged the share price had risen sharply following the upgrade but said it appeared to be based on a "significant speculative element" and on light trading volumes. "Moreover, whilst other parties may have stated an interest in Abano there is no certainty that a competing buyer will emerge and then be successful."
Mr Stewart said at the time the notice of offer was made three weeks ago, the offer represented a 71 per cent premium on the 12-month average price of $2.25.
It was also a 13.6 per cent premium to Abano's last closing price at that time of $3.39.
An independent adviser's report on the offer for Abano is being prepared.
Abano - which focuses on dental, audiology and other specialist care - is predicting a net profit after tax of $6.8 million to $7.5 million in its 2008 year, compared with $5 million last year, and revenues of $121 million to $125 million for the year to May, compared with $89.5 million.
- NZPA
