Metlifecare rumours fuel share surge

Metlifecare shares surged yesterday after the National Business Review newspaper reported that a takeover bid for the retirement home owner was imminent.

The company's board issued a statement to the market, saying it had not received any bids.

FKP Property Group, one of the two Australian predators the newspaper suggested was involved, said it was not a bidder and the other, Primelife Corp, said it did not comment on speculation.

Primelife managing director Jim Hazel denied the firm had appointed an adviser in New Zealand.

Metlifecare shares closed up 16 cents at $2.90, having surged 11 per cent to a record $3.05 earlier in the day. They have risen from $1.40 18 months ago.

The company's three biggest shareholders are Todd Lifecare on 34.91 per cent, Cliff Cook with 25 per cent and Fisher Funds Management on 13.57 per cent.

Fisher Funds Management bought into Ryman Healthcare and Metlifecare about 18 months ago when it formed a view that the sector's earnings growth would be strong, said chief investment officer Warren Couillault.

He said the fund manager had not received any approaches about a takeover bid.

In July, Metlifecare forecast full-year profit would rise 20 per cent this year. It has increased earnings by an average 11 per cent a year in the past five years.

Metlifecare operates 13 lifestyle villages, with 2000 residents nationwide, equal to an 11 per cent share of the retirement village market.