Announcement – Metlifecare acquisition
In December 2019, Metlifecare announced to the New Zealand Stock Exchange that we have entered into a Scheme Implementation Agreement (SIA) under which EQT, a highly respected European investment company, will acquire all of Metlifecare’s shares for $7.00 per share.
While a number of conditions need to be met under the terms of the SIA in order for the sale to proceed, the offer has been endorsed by major shareholders and the Board of Metlifecare.
Metlifecare Board Chair Kim Ellis said: “The Board is pleased to have achieved this outcome on behalf of shareholders. The Board has made it clear for some time that the market has undervalued the company. The price of $7.00 represents a 67% premium to the company’s 52-week trading low and a 38% premium to the closing price prior to the announcement of the initial offer and is within the company’s own valuation range.
Kim Ellis, Metlifecare Board Chair
“Throughout the negotiation process, the Board has had comfort that EQT’s philosophy and values align with those of Metlifecare. We are confident that they will continue to focus on ensuring Metlifecare’s village and care operations have customers at the core, as well as growing the business through development of new villages,” said Mr Ellis.
Ken Wong, Managing Director at EQT Partners and Investment Advisor to EQT Infrastructure IV fund, said: “We are delighted about the opportunity to partner with Metlifecare and are fully committed to supporting Metlifecare and its management team to embark on this exciting journey to develop and operate high-quality retirement villages and continue to provide the exceptional care to New Zealanders which Metlifecare is known for.”
The transaction will be implemented by a scheme of arrangement, a court-supervised process under which a meeting of shareholders will be held to vote on the transaction.
The scheme is subject to various conditions including shareholder approval, High Court approval and Overseas Investment Office consent. Assuming all conditions are met, Metlifecare shareholders will be given the opportunity to vote on the scheme at a special shareholders’ meeting, expected to be held in April 2020.
It is currently contemplated that the scheme will be implemented in May 2020 at which time EQT would assume ownership of Metlifecare.
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