Settlement of National Hearing Care sale
Abano Healthcare Group has today confirmed settlement of the sale of its investment in NHC Group Pty Limited for approximately NZ$28 million.
This means that, subject to High Court approval, the capital return of $27.3 million to shareholders by way of a compulsory, pro rata 1 in 4 cancellation of shares, as approved by shareholders at the annual meeting on 30 November 2010, will proceed.
High Court approval has been sought, and Abano anticipates an outcome by late December 2010, with a view to the share cancellation and payment to shareholders taking place by the end of January 2011.
Chair of Abano, Alison Paterson, commented: “The cash receipts from the sale of our investment in NHC Group are effectively the same as the amount proposed to be returned to shareholders.
“The share cancellation represents a tax effective return of capital to shareholders, and is an efficient use of Abano’s balance sheet. It will also reduce the number of shares on issue and therefore improve earnings per share going forward.”