Published 20 August 2012
The independent directors of Acurity Health Group Ltd (ex-Wakefield Hospital Ltd) recommended on Friday that shareholders shouldn’t accept the 50.01% partial takeover offer by Austron Ltd.
Austron is owned by Acurity’s 2 largest shareholders, Royston Hospital Trust Board & Medusa Ltd.
The independent directors said the $6/share offer, which must remain open until Thursday 6 September, represented a 25% premium over the closing price on 8 August, the day before the offer was made, but was materially below the independent advisor’s assessed value range of $6.92-7.88 (with a mid-point of $7.40).
The independent directors said shareholders shouldn’t accept it “unless they have a short-term objective to realise the certainty of some cash now”.
To comply with its Takeovers Code obligations, Acurity has included in the target company statement an update on its financial performance since 31 March, which showed that for the 4 months to July total revenue was up 0.7%, ebitda was down 16.5% and adjusted net profit after tax (excluding interest rate swap revaluations) was down 25.9%. However, Acurity noted that significant month-on-month fluctuations had been the norm for at least 3 years and that ebitda & adjusted net profit after tax improved in the last 2 months compared to last year.
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.