KEY POINTS:
The takeover battle for Abano Healthcare took an interesting new twist today with Masthead quitting its 19.9 per cent stake, but not selling to takeover aspirant Australian investment company Crescent Capital Partners.
It sold to Healthcare Industry at $5.20 per share.
Healthcare Industry is associated with the 30 per cent shareholding in Bay Audiology Limited not currently owned by Abano.
Healthcare is 70 per cent owned by Audiology founder Peter Hudson and his family.
Masthead's Mark Stewart said the price exceeded Masthead's value parameters.
"We like the industry and had viewed this as a long-term investment. However, the price offered was very attractive in the current environment."
Mr Stewart noted that other significant shareholders have recently reduced their holdings.
"The Abano management and board have made some pretty bullish assumptions and by selling to management, Masthead has ensured that there is now every incentive for them to perform."
Recent sharemarket jitters had come into his calculation, he said. Masthead had been approached by a number of parties seeking to purchase its cornerstone stake.
"The decision to sell to Healthcare Industry provided us with a clean, and immediate, exit and for that certainty we were attracted to sell," Mr Stewart said.
Crescent on Friday scooped up 8.7 per cent of Abano from institutions at prices below its offer at $5.20 a share, increasing its stake in Abano to 19.9 per cent.
Crescent is seeking 100 per cent of Abano, with shareholders having until February 29 to decide.
Mr Stewart said the problem with Crescent's offer was that it was conditional on gaining 90 per cent.
On Saturday, Abano chairman Alison Paterson reiterated the board's advice to shareholders not to sell, saying Crescent had not mentioned an escalation clause for sellers to participate in any increase in Crescent's offer.
Crescent director Michael Alscher on Monday told Abano shareholders that if they accepted Crescent's on-market offer and if Crescent lifted the takeover offer above $5.20, they would receive the difference between that higher price and $5.20.
On Friday, Brook Asset Management and BT Funds Management sold their Abano stakes, while Salvus Asset Management and ACC sold a substantial portion of their holdings.
Ms Paterson said some institutions sold because the size of the investment in their portfolios had increased when Abano's share price rose, breaching prudential investing rules.
"Shareholders such as Salvus and ACC have advised the company that they remain supportive shareholders and indeed they did not sell the majority of their shares as they see significant upside in the company," she said.
Abano had continued to experience improved margins across all divisions, she said. Abano shares closed on $5.00 yesterday.
- NZPA
