An ageing population like Masterton's Eric Blake means retirement care businesses are popular.
Australian-listed FKP Property Group has teamed up with Australia's Macquarie Bank to make a $327 million bid for retirement home operator Metlifecare.
The two have struck a deal to buy a 25 per cent stake owned by founder Cliff Cook's Private Healthcare for $3.75 a share.
Metlifecare's shares closed Friday
down 1c at $3.74.
As FKP and Macquarie have agreed to buy more than 20 per cent of the company, they now have to make the same offer available to all shareholders, in accordance with the Takeovers Code.
However, before launching a bid, Cook has to comply with a 1999 shareholder agreement requiring him to first offer his stake to 35-per-cent-holder Todd Lifecare at the same $3.75 a share agreed with FKP and Macquarie.
If Todd decides to not exercise its right of first refusal, it will have to sell its stake to FKP and Macquarie.
Notice of the deal between FKP, Macquarie and Cook, who is selling to concentrate on his investments overseas, will be filed with the stock exchange this morning. Notice of the deal was filed to the Australian Stock Exchange late Friday.
FKP and Macquarie will each contribute a maximum of $105 million for their respective interest in Metlifecare, should the cash offer proceed. Their contribution will also depend on the level of shareholder acceptances. The balance of the acquisition will be funded by debt.
An ageing population means retirement care businesses are sought-after assets and two big operations have changed hands this year.
Macquarie Bank bought Eldercare from Abano in May for $63.5 million and, in July, Australian company DCA bought the country's largest private rest home operator, Guardian, for $300 million.
