Quadrant reduces Summerset stake
Retirement village operator Summerset has been placed in a trading halt for up to two days to enable a big selldown by its majority shareholder.
Australian private equity firm Quadrant is divesting about a third of its 56 per cent stake in the NZX-listed company, or 40 million shares.
The sale will be conducted by UBS New Zealand, after an agreement was forged on Saturday. The trading halt will be lifted no later than Wednesday.
Quadrant will remain a significant shareholder in Summerset, with a 37.2 per cent stake in the company, and has said it will continue its current representation on the board.
Summerset chairman Rob Campbell said the ownership change created a sound shareholder base for further growth.
"The board is pleased to have continuing support from QPE [Quadrant] and welcomes new retail and institutional support as we address the many growth opportunities ahead of us," Campbell said.
A restriction of trade agreement between the two parties expired at the end of February, leaving Quadrant free to reduce its stake.
The Aussie firm had previously sold down its near 100 per cent holding through an initial public offer in 2011, when shares debuted on NZX at $1.40 each.
Summerset shares closed at $2.58 on Friday.
The Wellington-based listed company recently reported a net profit of $14.8 million for the year ending December 31, up significantly from $4.3m a year earlier.
- © Fairfax NZ News