1 for 3 share buyback at $5.93 per share
Abano Healthcare Group Limited has today released details of the off market, pro-rata, voluntary share buy-back being offered to shareholders following the sale of Abano’s New Zealand audiology business, Bay Audiology Limited, on 3 November 2009.
Abano is offering to purchase, on a pro-rata basis, 1 ordinary share out of every 3 ordinary shares held by each shareholder on the record date of 1 December 2009, at a price of $5.93 per share. This price is the same price as the proposed issue price of shares under Abano’s Dividend Reinvestment Plan.
The share buy-back offer will open on 4 December 2009, close on 18 December 2009, and will be conditional on a minimum 15 percent acceptance threshold.
The maximum number of shares that Abano may take up under this pro rata share buy-back offer is 7,744,203. Accordingly, if all shareholders take up the offer, Abano’s issued share capital will be reduced from 23,232,608 shares to 15,488,405 (excluding any shares issued under the Dividend Reinvestment Plan). Shareholders will have the opportunity to sell additional shares beyond their pro rata entitlement, should some shareholders elect not to participate.
Chair of Abano, Alison Paterson said: “The sale of Bay Audiology realised cash proceeds to Abano of approximately $118 million, and the board will return a total of $58 million to shareholders. This will be achieved through the special early interim dividend of 52 cents per share to be paid on 2 December 2009 (totalling approximately $12 million) and the off-market, pro rata voluntary share buy-back which closes on 18 December 2009 and will be paid on 23 December 2009 (totalling approximately $46 million).”
To assist shareholders in making an informed decision about the share buy-back offer, the regular six monthly Shareholder Newsletter will be distributed to shareholders by 2 December 2009 and a copy of the share buy-back Offer Document will be made available to shareholders on 4 December 2009.
Summary of Key Dates
- Share buy-back offer
- Record date for share buy-back offer 01 December 2009
- Opening date for share buy-back offer 04 December 2009
- Closing date for share buy-back offer 18 December 2009
- Payment and share cancellation date 23 December 2009