Retirement village company Metlifecare confirmed today that the share price arising from this week's book-build for the company's shares had been set at $2.20 each - a 5c discount to its last traded price.

The offer, which was part of a three-way merger between Metlifecare, Vision Senior Living and Private Life Care Holdings, involved majority owner Retirement Villages NZ (RVNZ) selling down its stake to 43.2 per cent through the sale of 22.5m Metlifecare shares.

The offer was three times oversubscribed, Metlifecare said.

Consistent with RVNZ's previously-indicated preferences, the large majority of the shares have been allocated to retail shareholders, Metlifecare said.


Managing director Alan Edwards said the strong interest provided further endorsement of Metlifecare's strategy to re-position the company.

Chairman Peter Brown said the offer had helped to broaden the company's ownership.

"We believe the continued support of our new and existing shareholders should also assist in obtaining better value-recognition for Metlifecare through our share price over time," he said.

Goldman Sachs acted as the arranger, sole book-runner and joint lead manager for the offer, with JBWere providing access to their private wealth clients. Forsyth Barr was joint lead manager.

Brokers said Metlifecare's share price had suffered from a "`stock overhang" in the leadup to the offer and that the successful bookbuild would remove uncertainty surrounding the stock.

Metlifecare shares have been on a trading halt during the bookbuild. They last traded at $2.25.

Trading in Metlifecare shares will resume this morning.