Independent shareholders in Metlifecare are welcoming cautiously a potential $327 million offer for the retirement home operator.
Fund managers ING and Fisher Funds, however, will not say whether they will accept a proposed $3.75 a share joint offer from Australia's FKP Property Group and Macquarie Bank.
Fisher Fund's Carmel Fisher,
who oversees a near 12 per cent stake in Metlife, said: "It is not high enough to blow the lights out. We are not in a hurry to sell."
She said the offer undervalued Metlifecare relative to peer Ryman Healthcare, in which Fisher holds another near 12 per cent stake.
"We are mindful of the strength of the sector and comparable businesses in Australia and New Zealand," she said.
ING's Shane Solly, who manages a less than 5 per cent stake in Metlife, said it was good to see a deal on the table after so much negotiation.
Founder Cliff Cook put his stake up for sale late last year.
"It is a positive outcome for investors. FKP and Macquarie are good owners in Metlifecare." Its shares were unchanged at $3.74.
FKP and Macquarie struck a deal last week to acquire a 25 per cent Metlifecare stake owned by Cook's Private Healthcare.
If this deal goes through, the duo will have to make the same offer to all shareholders in accordance with the takeovers code.
However, before FKP and Macquarie can launch a formal bid, Cook must comply with a 1999 shareholder agreement that requires him to offer his stake to Todd Capital (which holds 35 per cent) at the same $3.75 a share agreed with FKP and Macquarie.
If Todd decides not to exercise its right of first refusal, it will have to sell its stake to FKP and Macquarie.
Todd yesterday declined to comment.
Under the terms of the shareholder agreement, it has 30 days to make up its mind.
Cook is selling to concentrate on his investments overseas.
An ageing population means retirement care businesses are sought-after assets and two big operations have changed hands this year.
