NZX listed medical property specialist Vital Healthcare has announced it is considering a dual-listing on the ASX.
At the company's AGM at Eden Park, investors were told how the board was eying an Australian listing which it said would need 75 per cent of investor approval.
"We continue to review options and initiatives to enhance Vital's access to capital at the lowest possible cost," an overhead presentation said.
"We are investigating foreign exempt listing on the ASX - NZX to remain primary listing - along with related structural considerations. Early indications from exploratory work are positive but there can be no assurance that this initiative will proceed. If the initiative is progressed it would be subject to a unitholder vote," the presentation said.
More information will be given in February when Vital's first-half result will be announced.
One unitholder asked the board why Vital did not consider a primary listing on the ASX with a secondary position on the NZX. Vital director Bernard Crotty said although 75 per cent of Vital's assets were in Australia, the trust was domiciled in New Zealand.
Miles Wentworth, interim manager, said Vital's retail and institutional investors in New Zealand had to be "protected" as did the value of the business "by making sure the structure is attractive to Australian investors because you don't want a structure which prohibits or penalises Australian investors, so [manager] NorthWest is looking to get the best of both worlds."
At its AGM this morning, NZX listed property specialist is putting a range of changes to the shareholder vote.
Vital is holding its AGM at Auckland's Eden Park. The business with a $1.2 billion market capitalisation, wants investors to vote for a revised fee structure and other changes.
Vital owned 42 properties valued at $1.8b on June 30 this year but hit controversy with the actions of its manager, Canada's NorthWest Healthcare Properties Management.
• Vital Healthcare manager and trustee refuse to answer questions on fees
• Comment: Vital Healthcare investors face dilemma over management fees
• NorthWest outlines new Vital Healthcare fee structure
• Vital to put new fees and changes to AGM after investors, analysts raise concerns
The Herald has reported how NorthWest bought Vital's management contract for $11.5 million in 2011 and has since collected well over $100m in fees, including $22.1 million in the six months ended December.
Before today's meeting, manager NorthWest released a summary of changes on the fees, governance, powers over independent directors and changes to the out-dated trust deed which was written in 1994. The changes are more comprehensive than those proposed on April 1 this year.
NorthWest has now claimed a lower base fee would increase earnings and a tiered base fee structure would create "value for all stakeholders". The incentive fee will be lowered and based on net, not gross assets.
Independent directors recommend unit holders back the proposal and vote in favour at the AGM. Changes include barring NorthWest from firing independent directors.
Nick Mar of Macquarie Research referred to Vital "continuing to lack an independent chair or majority of independent directors.