ABA
07/08/2013 08:30
GENERAL
REL: 0830 HRS Abano Healthcare Group Limited
GENERAL: ABA: Abano Rejects Unsolicited Indicative Proposal
Abano Healthcare Group Limited advises that it has received, and rejected, an
unsolicited, prospective "non-binding indicative and confidential" proposal
from a third party which involved the potential acquisition (by way of scheme
of arrangement) of 100% of the shares in Abano.
The proposal, which was presented in conjunction with Peter Hutson (whose
associated interests hold an approximate 14% shareholding in Abano) was from
a party with no current involvement, but an aspiration to invest and operate
in the Australasian dental sector. The party sought an exclusive and
confidential period of due diligence from Abano, including to enable it to
satisfy its financing requirements, and included a requirement of unanimous
Abano board approval.
The Board formed the view that the party was not offering any unique
attributes or an approach which were not already reflected in the Company's
strategic plan. The Board also concluded that the indicative price, while
above current market prices, substantially failed to reflect Abano's value or
prospects, and was not close to a level which would warrant granting an
exclusive period of dealing and due diligence, especially to a party with a
stated long standing aspiration to enter the dental sector.
The Board has now received an indication from the party concerned that,
absent the Board's willingness to cooperate on the basis requested in a
scheme structure, the party "currently intends to promptly move down the
takeover path".
There is no certainty that the party will proceed with an offer, or if it
does, as to its pricing, conditionality, and other terms. However, given the
indication now received, and that the Board has approved, and announced,
various capital raising initiatives which are underway, the Board met and
reviewed the matter this evening and considers it appropriate to advise
shareholders of this development.
The Board does not currently intend to further engage with the party
concerned, and looks forward to the successful completion of the announced
capital raisings and to continuing to execute against the Company's strategic
plan.
ENDS
End CA:00239347 For:ABA Type:GENERAL Time:2013-08-07 08:30:05
