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- Release Date: 25/10/13 10:35
- Summary: ASSET: IFT: Infratil Commits to Buy a 19.9% Interest in Metlifecare Ltd
- Price Sensitive: No
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IFT
25/10/2013 08:35
ASSET
REL: 0835 HRS Infratil Limited
ASSET: IFT: Infratil Commits to Buy a 19.9% Interest in Metlifecare Ltd
Infratil advises that it has entered into a conditional sub-underwriting
agreement with Goldman Sachs New Zealand Limited to acquire a 19.9% interest
in Metlifecare Limited
for consideration of NZ$147.9m (NZ$3.53 per share). Goldman Sachs has entered
into a fixed price underwriting agreement with Retirement Villages New
Zealand Limited ("RVNZ") for its 37.7% interest in Metlifecare. The
acquisition is expected to settle on 28 November 2013. Metlifecare is a NZX
and ASX listed retirement village and aged care provider in New Zealand.
Infratil would fund the acquisition from existing debt facilities.
Infratil Chief Executive, Marko Bogoievski commented that, "the sector trends
are very attractive, and Metlifecare represents a very good entry point for
Infratil".
Marko Bogoievski further stated that, "the investment is consistent with many
of the demographic and other trends influencing the balance of infrastructure
investment activity across our portfolio. Infratil has a good understanding
of the macro-economic drivers in the retirement village and aged care sector
and is experienced at developing infrastructure and related services to meet
future demand. Infratil has extensive property knowledge and can work with
Metlifecare to develop its pipeline of brownfield and greenfield sites. We
look forward to working with Metlifecare's Board and management team to help
them meet the needs of current and future Metlifecare village residents".
The acquisition is conditional on the underwriting agreement between Goldman
Sachs and RVNZ not being terminated under material adverse change and other
termination provisions. Infratil may terminate unless Goldman Sachs confirms
that RVNZ have made arrangements to release existing security over the shares
by Monday, 4 November 2013 (or any later date Infratil may specify). A
detailed summary of the termination rights is set out in Schedule 2 of the
sub-underwriting agreement itself, filed with our substantial security holder
notice. Settlement may be deferred to as late as 16 December 2013.
Kevin Baker
Chief Financial Officer
Infratil
End CA:00242862 For:IFT Type:ASSET Time:2013-10-25 08:35:15
