Austron launches bid for Wakefield

Austron Limited has launched a partial takeover bid for Wakefield Health, the private hospital operator which last year snapped up medical investor Norfolk Investments.

The $52 million partial takeover offer for a 50.01 per cent stake at $6 per share is being backed by Royston Hospital Trust Board and Medusa, which co-own Austron and also each already hold a 19.99 stake in Wakefield.

The all-cash deal represents a 25 per cent premium on Wakefield's closing price on the NZX yesterday. The shares have shed about 7 per cent of their value over the past 12 months.

The offer also has the backing of AMP Capital Investors, which is selling about a third of its 15.7 per cent Wakefield shareholding to Austron, with a commitment to further reduce its stake to ensure the deal goes ahead.

That potentially gives Austron a 55.7 per cent pre-acceptance rate.

Austron said has no plans to materially alter the business should its offer be accepted.

Under the terms of the deal, all existing Wakefield shareholders who offer up to half of their shareholding will have the sale automatically accepted, with scaling applied to any offer over 50 per cent.

The official partial takeover notice is expected to be dispatched to all shareholders by August 9.

Last year Wakefield acquired an 86 per cent stake in Norfolk, which owns 60 per cent of the Grace Hospital in Tauranga, after three tilts at the company.

- © Fairfax NZ News