o Abano on track to acquire 200th dental practice by end January 2017.
o Year to date, Abano is tracking above financial forecasts for FY17 used in
Grant Samuel valuation.
o Improving same store performance trend continuing for Australian dental
business.
o In lieu of Dividend Reinvestment Plan, Abano Directors intend to acquire
shares on-market with dividend proceeds received in respect of shares they
own.
o Healthcare Partners'' dividend payment applied to offset a portion of the
over $700,000 in external costs yet to be reimbursed to Abano by Healthcare
Partners.
Abano Healthcare Group Limited (NZX: ABA) is on track to acquire its 200th
dental practice by the end of January 2017, as it continues to grow the size
and scale of its trans-Tasman dental group.
The company is expecting to add an additional 31 dental practices in the 2017
financial year. To date, in this financial year, Abano has acquired 18
practices, expected to deliver approximately $24 million in additional gross
annualised revenues.
Each dental practice acquisition is earnings accretive from day one of
acquisition, and provides a return on investment in excess of Abano''s
Weighted Average Cost of Capital (WACC). Abano''s dental practice acquisition
rate is dependent on a number of factors including timing of settlement, the
requests of the dentist vendor and the location and size of the acquisition.
Following the December trading results, Abano confirms it expects to deliver
full year financial results in line with the FY17 financial forecasts
detailed in the Grant Samuel Independent Adviser''s report. In particular,
the Australian dental business is continuing its improving trend of monthly
same store performance.
Abano Directors to Invest Dividend Proceeds into Shares Acquired On-Market
On 14 December 2016, Abano announced a record interim dividend payment of 16
cents per share, up 60% on the previous first half period (HY16: 10 cents),
with payment of the dividend made today. As per Healthcare Partners'' offer
condition, this dividend payment will be deducted from the offer price
payable by Healthcare Partners for Abano shares.
As Healthcare Partners'' directors, Peter and Anya Hutson and James Reeves,
refused to allow Abano''s usual Dividend Reinvestment Plan to be offered for
the FY17 interim dividend, Abano''s Directors advise that they intend to buy
shares on-market with dividends received in respect of shares they own.
Healthcare Partners'' Dividend Applied to Offset Non-Payment of Takeover Costs
Abano advises that it has applied today''s interim dividend payable to
Healthcare Partners Holdings Limited towards offsetting a portion of the
takeover costs incurred or committed to by Abano prior to the withdrawal of
the second takeover notice by Healthcare Partners on 24 November 2016.
To date, Abano has incurred total external costs of over $700,000 responding
to the partial takeover offer by Healthcare Partners. These costs relate to
the first two takeover notices which were withdrawn by Healthcare Partners in
November 2016; responding to the third takeover notice and formal takeover
offer by Healthcare Partners; and countering the various complaints made by
Healthcare Partners to regulators which have all been dismissed.
Under the Takeovers Code, these costs are to be reimbursed by the bidding
party. However, Abano has not received any payments or acknowledgement from
Healthcare Partners for the reimbursement invoices issued by Abano since
November 2016, despite repeated demands.
The Abano Board does not see it as reasonable for Abano and its shareholders
to be funding costs in relation to the unsolicited bid by Healthcare
Partners.
It has now been two months since the second takeover notice was withdrawn by
Healthcare Partners and no costs for these notices have been reimbursed since
the first or second withdrawn notices. Accordingly, to ensure Abano''s
shareholders do not continue to be disadvantaged, Abano has withheld from
Healthcare Partners the 16 cent per share dividend paid by Abano today to
shareholders, and applied it to the unpaid invoices in relation to costs
incurred or committed to prior to Healthcare Partners'' withdrawal of their
second notice in November 2016.
The Board notes that, following the offsetting of the dividend amount, there
is still an outstanding debt to Abano of over $185,000 in relation to ongoing
takeover costs, which is overdue for payment by Healthcare Partners. The
Abano Board''s expectation is that Healthcare Partners should make payment of
this outstanding amount promptly without further delay to ensure Abano
shareholders are not further disadvantaged by Healthcare Partners.
ENDS
For more information, visit www.abanohealthcare.co.nz or please call:
Richard Keys
Chief Executive Officer
Tel: +64 9 300 1413 Mob: +64 274 818368
Trevor Janes
Chairman
Tel: + 64 274 935033
Abano Healthcare Group is New Zealand''s leading listed specialist healthcare
investor and operator, with businesses in two sectors - dental and radiology
- and operations across New Zealand and Australia.
End CA:00295834 For:ABA Type:GENERAL Time:2017-01-23 08:32:05