Abano shareholders in for cash windfall

Photo / Getty Images

Abano is returning $27.3 million to shareholders by cancelling one in every four shares held.

Shareholders will receive a cash sum of $5.23 for each share cancelled, being the volume weighted average price of Abano shares over the five trading days prior to October 27.

The capital return is compulsory and pro rata, so the percentage ownership of each shareholder will remain unchanged after the cancellation.

The capital return is subject to shareholder approval of a special resolution at the annual meeting on November 30 and settlement of the sale of the company's jointly held 13 per cent shareholding in NHC Group.