Another company seeks to unload care business

Listed healthcare company Abano is the latest player to eye up deals in the aged-care sector.

The company has appointed investment bank Clavell Capital to advise on options including selling its aged-care business.

Abano - formerly called Eldercare - owns and runs retirement villages and aged-care facilities and offers other health and medical services.

A sale would be part of a wave of ownership changes in the sector.

Pacific Equity Partners, of Australia, bought the unlisted Guardian Healthcare for $110 million as a platform for growth.

A majority stake in another listed player, Metlifecare, is for sale. A purchase would trigger a takeover offer.

Clavell sounded out potential buyers on behalf of Metlifecare founder Cliff Cook, the would-be seller of a 25 per cent stake, before deciding to act for a potential bidder.

Abano chairman Jim Syme said Clavell would advise on opportunities including expansion and acquisition, the release of capital from land and buildings, and the sale of part or all of the aged-care business.

Abano yesterday announced an unaudited bottomline profit of $50,000 on revenue of $33.1 million for the six months to November 30 - down from the previous corresponding period's $310,000 and $33.7 million. Operating profit was $4 million, against $4.5 million.

Managing director Alan Clarke said an improved performance was expected as the company bedded down acquisitions already made.