Orion Health Group investors vented their frustrations at the software company's dismal performance as a listed company but signed off on plans to split up the business and return capital to shareholders.

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The decision was largely a fait accompli with enough proxy votes to pass the resolutions at the Friday meeting. The final tally released today showed 99.9 per cent in favour of the transaction and 99.8 per cent supporting the share buyback.

Orion will sell its Rhapsody unit to UK private equity firm Hg for $205 million, dilute its stake in the population health management (PHM) unit, and retain full ownership of its hospitals division. After capitalising the joint investments, the remainder of the funds will be used to buy back shares at $1.16 to $1.26 a share.


The shares rose 0.9 per cent to $1.08 on Friday and were unchanged today. They were issued to much fanfare at $5.70 in the 2014 initial public offering.

Chair Andrew Ferrier told shareholders he was bitterly disappointed that Orion hadn't delivered on its potential, but that this was the best option for investors.

Before the vote, the New Zealand Shareholders' Association said it would support the resolutions, but was very disappointed with the outcome for shareholders.

Orion founder Ian McCrae told shareholders the company's performance had been a "major disappointment" and hasn't delivered for investors.

The future of the NZX listing for the remaining business will depend on how many shareholders decide to stick with the firm, he said.

"If only 5 per cent decide to stay in then that's a different situation to if everyone wants to stay in," he said.

McCrae's interests will sell 20 per cent of their stake in the buyback. His final holding will depend on the level of uptake by other investors, ranging from 44.2 per cent if no-one participates to 100 per cent if everyone does.

- BusinessDesk