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- Release Date: 08/10/13 10:44
- Summary: TAKEOVER: ABA: Archer Hutson Consortium asked to Price Audiology
- Price Sensitive: No
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ABA
08/10/2013 08:44
TAKEOVER
REL: 0844 HRS Abano Healthcare Group Limited
TAKEOVER: ABA: Archer Hutson Consortium asked to Price Audiology
Abano Healthcare Group Limited (NZX: ABA) has today requested Peter Hutson
and his interests to name the price at which they will either sell their 50%
holding in Bay International Limited to Abano or buy Abano's 50% holding in
Bay International. The price is required to be the same for either
alternative with Abano to have the right to decide whether it buys from or
sells its interest to Hutson at Hutson's nominated price. Bay International
is the company through which Abano and the Hutson interests operate an
audiology business in Australia and South East Asia.
Trevor Janes, Abano's Chairman said, "Under the Archer/Hutson/Reeves
indicative non-binding proposal to acquire 100% of Abano, a "nominal value"
was ascribed to Abano's audiology business. Under that proposal, the Hutson
interests would acquire Abano's share of the audiology business at this
nominal value from an Archer/Hutson/Reeves owned Abano.
"We have a very different view on the value of the audiology group. The
carrying value of our 50% shareholding in Bay International, as stated in
Abano's audited 31 May 2013 full year accounts, was NZ$12.9 million. This
value was approved by the Abano Board, including Peter Hutson, after
confirming no impairment was required and this was audited by PwC."
"We call on Peter Hutson to respond to our invitation to name the price and
agree to transact on the basis we have offered. We call on Archer to permit
Hutson to do so, to the extent he would otherwise be restrcited by his
exclusivity arrangements with Archer. Our offer to buy the 50% of Bay
International we do not own, or sell the 50% we do own, at our option, at the
price Peter Hutson wants to put on the business will be a further step in the
removal of Hutson's conflicts of interest under the Archer proposal he has
promoted. If Abano is the buyer of the remaining 50% of Bay International we
will progress the audiology group strategy, with the full range of options
available to a 100% owner, for the benefit of all Abano shareholders.
Peter Hutson resigned as a director of Abano on the 19 September 2013, after
he was asked to do so by all other Board members, because of his significant
conflict of interest. In addition, Abano has rejected the
Archer/Hutson/Reeves non-binding proposal, which had an indicative price
range of $6.97 to $7.14 per Abano share.
Trevor Janes concluded; "If the Archer/Hutson/Reeves consortium are serious
about making an offer for the company, they should do so. Our shareholders
can then assess the bid on its merits and with the benefit of an independent
adviser's report as required by the Takeovers Code."
End CA:00242093 For:ABA Type:TAKEOVER Time:2013-10-08 08:44:12
