Abano update on due diligence process

The Board of directors of Abano Healthcare Group Limited advises that it remains in discussions with parties which have expressed interest in the company.

Where relevant, information provided to third parties has excluded any competitively sensitive details regarding aspects of Abano’s businesses.

For its own reasons, one party which was conducting due diligence, has withdrawn from the process at this stage and has so advised various shareholders with whom that party was in discussions.

The Board notes that party’s interest was primarily in the New Zealand audiology sector, its proposal was incomplete and conditional, with a suggested offer price at the bottom end of the Ferrier Hodgson valuation range. The same party has subsequently suggested an alternative proposition to acquire Abano’s audiology business.

The Board has reconfirmed its recommendation to shareholders to reject the Masthead offer. The Board’s view on, and recommendation to reject, the Masthead offer is made irrespective of the existence or outcome of other parties’ interest.

The Board has previously indicated that it believes 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.