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Abano Directors reiterate “Don’t Sell” Advice in response to Masthead revised offer

Abano Healthcare Group Ltd directors today reiterated their “Don’t Sell” advice on the revised Masthead Portfolios Ltd offer of $5.00 per Abano share, Chairman, Alison Paterson said today.

“We repeat our earlier advice to shareholders which is to not sell their shares and not to accept the offer.
“The offer remains a partial offer for control which, if successful, has in the view of the board the potential to significantly disadvantage remaining shareholders. The partial nature of the offer was a material consideration in our earlier rejection of the initial offer from Masthead and the increase in price does not overcome our significant reservations“.

In respect of the increased price offered by Masthead, Alison Paterson said that while the board of Abano were pleased that Masthead had better recognised the merits of the current growth strategy, the revised offer was still at the lowest point of the valuation range in the Independent Appraisal Report by Ferrier Hodgson which identified a value range of $5.00 – $5.80 for Abano shares with a mid point of $5.40. Furthermore this was a price for 100% of the company.

“The Board has previously indicated that it believed that the benefits of the current strategy are just starting to emerge and higher values than indicated in the Independent Appraisal Report will be achievable if the company is successful in implementing its strategic plans and capitalising on the market opportunities it perceives.“

Moreover the Board is still in discussions with other interested parties who see value in Abano and its strategy which may see alternative propositions being offered to shareholders.

In this regard the Board would also remind shareholders that once they accept the Masthead offer they cannot withdraw that acceptance to consider other offers, should they emerge.

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