Raised offer secures Metlifecare stake

Australia's FKP Property Group and Macquarie Bank yesterday won almost two-thirds of the shares in retirement village operator Metlifecare after raising their offer by $13 million to $341 million.

Major shareholders Todd Lifecare and the Private Healthcare, which is owned by Metlife founder Cliff Cook and his family, have agreed to sell their shares to FKP and Macquarie at the new offer price of $3.90 a share.

The Australians now have to make a bid for the entire company at the same price.

Shares in Metlife, which operates 13 retirement villages across New Zealand, yesterday rose 13c to $3.86.

The agreement brings to an end almost a year of feuding between the two major shareholders.

Cook agreed twice to sell the family's 25 per cent stake - the first time to an unnamed suitor in April for $3.72 a share and then with FKP and Macquarie at the end of September at the earlier offer price of $3.75.

But, in each case, he was stymied by a complicated agreement between the major shareholders. This required Cook to first offer his shares to 35 per cent holder Todd at the price agreed with third parties. Todd then had 30 days to accept the offer before it was required to sell the shares to the buyer Cook had lined up.

FKP and Macquarie yesterday said they had decided to offer a higher price in order to get Todd to waive its rights to the shares.

FKP and Macquarie will retain Cook as a consultant on a $300,000 a year contract. They are also interested in talking to Cook about acquiring some of his other assets.

Cook said the agreement had given certainty to village residents and minority shareholders. Todd did not respond to the Herald's calls.

FKP and Macquarie will launch the full offer to shareholders within three to four weeks, but will buy Todd and Cook's stakes no matter the level of acceptance from minority shareholders.

Fisher Funds chief investment officer Warren Couillault said yesterday his fund, which owns 11 per cent, would wait for an independent appraisal of the offer before making up its mind.