Metlifecare Amends Merger Terms and Updates Market
Leading retirement village and aged care provider, Metlifecare Limited (NZX:
MET), today announced amended consideration and financing terms for its
proposed acquisition of Vision Senior Living Limited (VSL) and Private Life
Care Holdings Limited (PLC).
The amendments were agreed by the Company, the VSL and PLC shareholders and
the Company''s banking syndicate prior to today''s shareholder meeting to vote
on the transaction. The majority of Metlifecare''s institutional shareholders
have advised that the transaction, following these amendments, will be
supported. Metlifecare''s Independent Directors and management are confident
that the proposed acquisition will receive the requisite support at today''s
meeting.
The amendments are:
o A reduction in the consideration to Vision shareholders from 20m shares to
10m shares.
o Instead of raising additional capital from third party investors to reduce
debt, Metlifecare will rationalise its property asset portfolio to provide
further headroom in its balance sheet. This change has the full support of
Metlifecare''s banking syndicate.
The Metlifecare Board confirmed that it will appoint two further Independent
Directors, the first within 30 days of completion of the transaction.
The transaction is conditional upon Overseas Investment Act approval,
shareholder approval, certain third party consents and no material adverse
changes. The parties continue to work towards satisfying all conditions by
30 June 2012, with settlement scheduled for late July 2012.
The Company also advises that it has appointed CBRE to perform the
Metlifecare valuation for the year ended 30 June 2012. Metlifecare expects
that recent transactions in the retirement village industry and wider
economic activity will lead to changes in its discount rates and property
price growth assumptions. Initial discussions and analysis indicate that
these changes will result in a reduction to Metlifecare''s net assets of
between 15% and 20% relative to 31 December 2011.
ENDS
For more information, please contact:
Alan Edwards
Managing Director and CEO, Metlifecare
Tel: 09-539-8000
Released on behalf of Metlifecare by Jackie Ellis, Spice Communications Group
tel 09 360 8500 or email Jackie@spice.co.nz
About Metlifecare:
Metlifecare is a publicly listed aged care and retirement lifestyle company.
Established in 1986, the company has a proven track record of successfully
owning and managing retirement villages in New Zealand. Metlifecare currently
owns villages in prime locations throughout New Zealand, with most providing
provide a full continuum of care from independent villas and apartments
through to serviced apartments, rest homes and hospitals.
www.metlifecare.co.nz
End CA:00224086 For:MET Type:MERGER Time:2012-06-21 08:30:03