New Zealand: Oceania Healthcare to raise NZ$100m for acquisitions

Oceania Healthcare, New Zealand’s third-largest residential aged care provider, is in the process of raising NZ$100m (US$69.7m) to fund the acquisition of the Waterford retirement village on Hobsonville Point, and its existing leased facility and adjacent development land in Franklin.

Waterford comprises 64 independent living villas and 36 independent living apartments while the 6.1 hectares of land in Franklin, includes two hectares of land currently leased to Oceania and 4.1 hectares of bare land adjacent to the site. The leased site currently has a care-only facility with 44 standard care beds.

Oceania said that it intends to redevelop the combined site into an integrated village with more than 200 residences upon completion.

The group has completed the NZ$80m institutional placement which was, it said, “strongly supported by existing institutional shareholders and also attracted significant bids from other institutional investors”.

The price was fixed at NZ$1.30 per share. This was an 8.1% discount to the five-day VWAP.

At the end of last week, the group launched its NZ$20m retail offer. The offer price of the shares will be the lower of the placement offer price of NZ$1.30 and a 2.5% discount to the five-day volume-weighted average price of Oceania shares traded on the NZX over the five business day period before the retail offer closes.

The offer closes on 12 April.

The placement was fully underwritten by Jarden Partners and Macquarie Securities who are also managing the retail offer.

And following the departure of chief executive Earl Gasparich to Metlifecare in early March, Oceania has appointed chief financial officer Brent Pattison to replace him.

He joined Oceania Healthcare as CFO in January last year. A retirement and aged care sector specialist, Pattison has more than a decade of experience in investment banking; leading mergers and acquisitions, takeovers and capital market transactions including IPOs at Jarden and Forsyth Barr. Indeed he was lead adviser on the Oceania Healthcare IPO.