New Zealand: Abano sees improved takeover offer

Investors could be forgiven for thinking that the takeover of Abano Healthcare Group by a consortium of private equity firm, BGH Capital and the Ontario Teachers’ Pension Plan Board, is a yo-yo.

The NZ$150m (US$95.2m) deal for the dental company was a casualty of the Covid-19 pandemic and cancelled in April because a material adverse change had occurred with no break fee payable and no liability.

In early September it reappeared, albeit at a lower price.

Rather than NZ$5.70 per share, the consortium dropped the price to NZ$4.45 per share.

Last week, the price was increased once more, this time to NZ$5.20 per share as a result of strong trading and an updated forecast.

For October, the group gross revenue was NZ$1.9m ahead of management forecasts, with underlying EBITDA ahead by NZ$0.6m.

Lumino same practice gross revenue growth for October was 13% (previously forecast to be 4%). For the five months in the financial year to date, Lumino same practice gross revenue has grown by approximately 12%, inclusive of the Auckland Covid-19 shutdown in August.

And in Australia, Maven same practice gross revenue growth for October was flat. It has been forecast to shrink by 3%.

The board continues unanimously to recommend that shareholders vote in favour of the scheme in the absence of a superior proposal. The date of the shareholder meeting has been moves to 25 November.