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Abano Rejects Unsolicited Indicative Proposal

Abano Healthcare Group Limited advises that it has received, and rejected, an unsolicited, prospective ”non-binding indicative and confidential” proposal from a third party which involved the potential acquisition (by way of scheme of arrangement) of 100% of the shares in Abano.

Abano Healthcare Group Limited advises that it has received, and rejected, an unsolicited, prospective ”non-binding indicative and confidential” proposal from a third party which involved the potential acquisition (by way of scheme of arrangement) of 100% of the shares in Abano.

The proposal, which was presented in conjunction with Peter Hutson (whose associated interests hold an approximate 14% shareholding in Abano) was from a party with no current involvement, but an aspiration to invest and operate in the Australasian dental sector. The party sought an exclusive and confidential period of due diligence from Abano, including to enable it to satisfy its financing requirements, and included a requirement of unanimous Abano Board approval.

The Board formed the view that the party was not offering any unique attributes or an approach which were not already reflected in the Company’s strategic plan. The Board also concluded that the indicative price, while above current market prices, substantially failed to reflect Abano’s value or prospects, and was not close to a level which would warrant granting an exclusive period of dealing and due diligence, especially to a party with a stated long standing aspiration to enter the dental sector.

The Board has now received an indication from the party concerned that, absent the Board’s willingness to cooperate on the basis requested in a scheme structure, the party “currently intends to promptly move down the takeover path”.

There is no certainty that the party will proceed with an offer, or if it does, as to its pricing, conditionality, and other terms. However, given the indication now received, and that the Board has approved, and announced, various capital raising initiatives which are underway, the Board met and reviewed the matter this evening and considers it appropriate to advise shareholders of this development.

The Board does not currently intend to further engage with the party concerned, and looks forward to the successful completion of the announced capital raisings and to continuing to execute against the Company’s strategic plan.

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