ABA
01/05/2015 17:36
ASSET
NOT PRICE SENSITIVE
REL: 1736 HRS Abano Healthcare Group Limited
ASSET: ABA: Abano Settles Sale of Pathology Business
Abano Healthcare Group (NZX: ABA) has today confirmed settlement of the sale
of Aotea Pathology to Wellington SCL Limited, a wholly owned subsidiary of
Healthscope New Zealand Limited, following the satisfaction of all sale
conditions.
Abano had a 55 percent shareholding in Aotea Pathology, with Sonic Healthcare
Limited holding the remaining 45 percent.
Abano's Chief Operating Officer, Richard Keys, said: "We are pleased that the
sale will provide ongoing employment for Aotea's highly skilled and
experienced staff under their existing terms and conditions, with the
potential for long term employment in the new regional laboratory service.
"Aotea Pathology's reliance on short term, fixed price DHB contracts meant
that we had a hold and maintain strategy in place for a number of years.
Following this sale, Abano's exposure to District Health Board funding has
now reduced to under 1% of gross revenues.
"Our investment focus continues to be on healthcare services which are funded
by private payment and operate on a fee for service basis. These private
payment investment areas offer a significant opportunity to add scale and
enhance shareholder wealth, particularly in the trans-Tasman dental market
and in audiology in Australia and radiology in New Zealand."
Abano operates in three healthcare sectors. Dental is the largest sector,
with two wholly owned businesses - Lumino the Dentists in New Zealand and
Dental Partners in Australia - providing over 75% of Abano's gross revenue.
Abano also owns 50% of Bay International which has audiology networks in
Australia and South East Asia; and 70% of Insight+Ascot Radiology which has
five high end clinics in Auckland.
ENDS
End CA:00263804 For:ABA Type:ASSET Time:2015-05-01 17:36:03
