Abano Healthcare Group Limited (NZX:ABA) advises that it has received notice
of a counter-claim from Healthcare Partners Holdings Limited seeking an order
for payment to it by Abano of the January 2017 interim dividend amount of
approximately $523,000. This amount was retained by Abano and set-off
against a portion of the unpaid costs in relation to Healthcare Partners''
failed hostile partial takeover bid.
The counter-claim follows the launch of legal proceedings against Healthcare
Partners by Abano to recoup the remaining outstanding unpaid costs of
approximately $566,000, and is despite Healthcare Partners'' unsuccessful
complaint to the NZX about the set-off.
Abano has incurred over $1 million in costs in relation to Healthcare
Partners'' latest failed partial takeover attempt, including responding to the
first two takeover notices issued by Healthcare Partners which had to be
withdrawn due to their non-compliance with the Takeovers Code.
Abano has already provided significantly more detailed breakdowns of costs
than is normally provided in such claims, however, Healthcare Partners
continues to dispute every invoice and expense, including those relating to
the independent report prepared by Grant Samuel, communication, share
registry and even minor expenses such as printing and postage. In addition,
Healthcare Partners continues to request unreasonable items of additional
information including records of all verbal and written legal advice provided
to Abano in relation to responding to the failed partial takeover.
Abano understands that the level of detail being demanded is far beyond
anything that has been required in any other failed takeover attempt of a
listed entity since the Takeovers Code has been in force. The Abano Board
sees these requests from Healthcare Partners as disproportionate,
unreasonable and simply an excuse to avoid or delay payment.
Healthcare Partners'' directors, Peter and Anya Hutson and James Reeves, have
acknowledged in their High Court filing that they have made no payment
towards Abano''s takeover expenses, and the Abano Board notes that their
actions continue to be costly and disadvantageous to Abano shareholders.
Abano has denied a request from Healthcare Partners for an undertaking that
Abano will not set-off their final FY17 dividend planned for August 2017.
Abano has offered that if Healthcare Partners pays the full amount of the
outstanding debt of approximately $566,000 into an independent trust account
until the decision on the outstanding costs has been made and complied with,
then the Abano dividend due in August 2017 will be paid without set-off.
Given Healthcare''s public statement that they "are ready and willing to pay",
this will provide another opportunity for Peter and Anya Hutson and James
Reeves to honour their previous statements.
ENDS
End CA:00301230 For:ABA Type:GENERAL Time:2017-05-16 16:24:00