Abano Receives Notice of Despatch of Offer

Abano Healthcare Group Limited (NZX: ABA) advises that it has received notice that Healthcare Partners Holdings Limited has sent its partial takeover offer to Abano shareholders.

Healthcare Partners is a company associated with Peter and Anya Hutson and James Reeves, who have all been involved in previous attempts to gain control of Abano and to force changes to Abano’s Board.

The Abano Board reiterates its advice to shareholders to take no action in respect of the offer and wait for the Board’s recommendation and the Independent Adviser’s Report. These will be incorporated in Abano’s Target Company Response which will be sent to shareholders next week.

The preliminary view of the Abano Board is that the partial nature of the offer is not in the best interests of shareholders.

Healthcare Partner’s offer is NOT an offer for all shares. The offer price is only payable on the shares taken up under the offer. If the partial takeover offer succeeds, it is highly likely that scaling will apply and shareholders will only receive the takeover price for a portion of their shares (potentially only 38% if all shareholders accepted the offer for all their shares). It is very likely shareholders would retain a majority of their shares in Abano. The company would then be controlled by Healthcare Partners and its directors.

It is also likely that the value of Abano’s shares post-offer, and the ability to sell those shares, would be adversely affected.

There is no advantage in accepting early. Acceptances are not treated on a ‘first in, first served’ basis. Rather acceptances will be subject to scaling if total acceptances exceed the number of shares being sought under the offer. If shareholders accept the offer, shareholders will not be paid until after the offer closes.

If Healthcare Partners reaches its acceptance target in the last seven days of the offer, the offer period will automatically extend for 14 days. If this occurs, or if Healthcare Partners reaches its acceptance target earlier, Abano’s Board will let shareholders know as soon as possible so shareholders can consider what to do with their shares.

Shareholders are urged to TAKE NO ACTION and wait until they receive the Target Company Statement from the Abano Board.

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