Wakefield Health takeover launched

Health insurance policies fell to 1.35 million in the 12 months to March. Photo / Thinkstock

Austron, a joint venture company owned by the two main shareholders of Wakefield Health, has made a partial takeover offer for 50.01 per cent of Wakefield's shares at $6.00 a share.

The cash offer represents a 25 per cent premium to Tuesday's closing price for Wakefield's shares of $4.80.

Austron is controlled by Royston Hospital Trust Board and Medusa Ltd, a subsidiary of Masthead Holdings. Wakefield is a private hospital company.

JamRoyston and Medusa have already agreed to accept Austron's offer for their respective 19.99 per cent holdings in Wakefield.

In addition, AMP Capital Investors has agreed to the offer in respect of 862,988 shares in
Wakefield - about 5 per cent - plus sufficient further shares to ensure the partial offer is successful.

AMP currently controls 15.71 per cent of Wakefield's shares.

Austron's agreements with Royston, Medusa and AMP will provide that the minimum acceptance condition is met once the formal offer is put to shareholders.

Austron said the certainty that the offer will succeed will not preclude all other shareholders from participating.

Shareholders who tender up to 50.01 per cent of their shares will have those shares accepted under the offer, Austron said in a statement.

All shareholders who tender more than 50.01 of their shares may be scaled down.

Austron said it had no present intention to make any material changes to the business of Wakefield or its subsidiaries.

In May, Wakefield reporterd underlying earnings for March year of $6.52m, up 27.2 per cent on the previous year's earnings.