All Blacks play retirement game

Dan Carter and Richie McCaw own shares in Park Lane Retirement Village. Photo / Getty Images

All Blacks’ stakes in retirement villages could pay off in proposed mega-merger.

Dan Carter, Richie McCaw and Kieran Reid could benefit from a proposed mega-merger of 19 privately-owned New Zealand retirement villages into a single, publicly-listed company.

The three All Blacks, as well as former players Leon Macdonald, Aaron Mauger and Andrew Ellis, all own individual stakes of less than 5 per cent in Christchurch's Park Lane Retirement Village, according to Companies Office records.

A source said Park Lane was one of the 19 villages involved in the proposed merger.

The new entity, provisionally named Hercules, will comprise facilities in Auckland, Tauranga, the Bay of Plenty, New Plymouth, Palmerston North, Waikanae, Nelson, Blenheim, Rangiora and Christchurch, according to Hercules.

All Blacks are understood to own shares in other villages set to take part in the merger.

Carter has previously told the Press that he had invested in seven retirement villages, including facilities in Blenheim, Nelson and Christchurch. He was introduced to the retirement sector by Ben Hurst, the son of 1970s All Black Ian Hurst, the Press said.

Once the merger is complete, Hercules will have more than 2000 residents, with roughly half accommodated in aged care facilities and the other half in retirement villages.

Shareholders of the 19 villages are expected to meet early next month to approve the transfer of their shares into Hercules in exchange for shares in the new company.

"To complete the transaction, Hercules has undertaken that the company will seek to complete an initial public offering and listing on the NZX main board," Hercules said.

"Final details of the offer, including a possible name change, will be finalised by the Hercules board prior to registration of an IPO prospectus."

The offer is intended to raise $50 million to $100 million through the issue of new shares, which Hercules said would be used to pay down debt and provide funds for future growth.

"In essence Hercules will be fulfilling the vision of one of the drivers of the retirement village industry in New Zealand, the late Christchurch investment banker Grant Adamson who was instrumental in assisting many retirement villages and aged care facilities across New Zealand over the last 20 years," said Hercules director Michael Ambrose.

"Fourteen of those facilities are considering the proposal."

Hercules said the proposal would offer stakeholders in the 19 villages a number of benefits, including a greater ability to maintain and improve facilities, new career opportunities for staff and the scale the enlarged group would provide.

Shares in listed retirement village operators Ryman Healthcare and Metlifecare have gained 10.3 per cent and 44 per cent in the past 12 months, while aged care firm Summerset, which listed in 2011, has seen its stock price decline by 8.8 per cent over the same period.