Thursday, 22 February 2018

Announcement

TRANSACT: ABA: ABA Announces Sale of Ascot Radiology to Clinical Partners

20 Dec 2017 08:36NZX
ABANO ANNOUNCES SALE OF ASCOT RADIOLOGY TO CLINICAL PARTNERS

Abano Healthcare Group Limited (NZX:ABA) advises that it has entered into an
agreement to sell its 71% shareholding in Ascot Radiology to its radiologist
shareholders for a total consideration of $17.0 million.

The sale will provide a one-off gain of approximately $2.1 million after
costs which will be reported in Abano''s FY18 full year results. Settlement is
expected to occur on 27 February 2018, subject to usual conditions requiring
change of control consents for material contracts and leases.

The sale will see the completion of Abano''s transition from a
multi-discipline healthcare provider to a single focus dental group. Abano is
the second largest private dental provider in Australasia, through its Lumino
the Dentists network in New Zealand and Maven Dental Group in Australia.

This divestment will allow the company to continue its rapid growth in the
dental sector and focus on building its share of the $11 billion revenue
trans-Tasman dental market.

CEO of Abano, Richard Keys said: "Ascot Radiology is a high quality
specialist provider in the Auckland region with a strong reputation. It has
been a small but solid contributor to the Abano Group for over 12 years. We
are delighted that it will be returning to the ownership of our radiologist
shareholder partners, some of whom have been in partnership with us since we
first invested in the business in 2005.

"We believe the $11-billion revenue trans-Tasman dental market offers the
most growth and scale opportunity for Abano and our shareholders and it has
been our primary focus for a number of years.

"There is growing acceptance and popularity of the corporate model amongst
dentists and, combined with our dental group''s positive reputation and
workplace culture, this has seen the number and size of practices in our
acquisition pipeline increase. Proceeds from the sale will be used to fund
the continuing growth of our dental group, particularly in Australia as we
build our share of the market.

"We believe that our ongoing investment into the dental sector will continue
to add value and generate increasing returns for our shareholders."

ENDS
End CA:00312212 For:ABA    Type:TRANSACT   Time:2017-12-20 08:36:00
Views: 61
Abano Healthcare Group
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