Published 23 September 2011
ANZ National Bank Ltd said after buying (& reshuffling) 9% of Vital Healthcare Property Trust yesterday it’s decided not to internalise the trust management rights.
The bank told the independent directors of Vital Healthcare Management Ltd this today. But the independent directors, Bill Thurston & Graeme Horsley, said they remained of the view that internalisation &/or corporatisation was in the best interests of unitholders and they’d try to re-engage with ANZ in the new year.
They said the trust would hold its annual meeting in December: “If the Accident Compensation Corp & Ascot Property Management Ltd wish to proceed with the resolutions previously proposed by them, these resolutions will also be dealt with at the annual meeting. If Ascot’s resolution is to be put to unitholders, Ascot will need to resolve certain Securities Act compliance requirements associated with its proposal. The independent directors have previously raised these issues with Ascot.”
ANZ subsidiary OnePath (NZ) Ltd put a $14 million price tag on buying out its management rights in April, reducing the price to $8 million after the independent directors rejected the original figure.
Ascot produced a $4.5 million buyout offer in June and ACC & others proposed sacking the manager.
ANZ National subsidiary AUT Investments Ltd (owned by another subsidiary, OnePath Holdings (NZ) Ltd), took its Vital stake from zero to 9% yesterday.
OnePath (NZ) Ltd, owner of Vital’s management company, sold its Vital stake down from 7.8% to 4.7% and ACC reduced its holding from 9.1% to 5.5%, both selling at $1.195/unit, above the $1.15-1.18 price range quoted by NZX for yesterday’s trades.
23 September 2011: ANZ puts 9% of Vital into new subsidiary, including some of ACC’s stake
31 August 2011: Talks resume on Vital Healthcare management buyout
31 August 2011: Argosy internalisation settled
30 August 2011: Internalisation vote wins at Argosy
29 July 2011: OnePath management sell-off totally unstuck
27 April 2011: $14 million buyout price on Vital management contract
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.