Hostile takeover bid for Abano Healthcare has become "an expensive exercise" for the bidder, majority shareholder Healthcare Partners.
Abano’s board is chasing payment of a further $185,000 in outstanding costs associated with the takeover, after withholding more than $700,000 in dividends from Healthcare Partners.
Labelled the dissident shareholder group, Peter and Anya Hutson and James Reeves, via their entity Healthcare Partners, already held a 19% stake in Abano when, in early November, they launched a $9.84-a-share bid to gain a controlling 50.01% shareholding.
However, after almost two months Healthcare had notched up just 1.02% acceptances from shareholders, taking their stake to barely more than 20%.
Abano’s chairman Trevor Janes said Abano had so far incurred "total external costs" of more than $700,000 in responding to the Healthcare takeover offer, and exercised its right under the takeover code to recoup those costs by withholding Healthcare’s $700,000 dividend payment, a decision which does not affect other shareholders.
"Despite repeated requests for payment for almost two months ... we had not received any reimbursement or even any acknowledgement from Healthcare partners," Mr Janes said in a statement.
Craigs Investment Partners broker Peter McIntyre said while the takeover play had been "hard fought", Healthcare’s gain of only 1.02% during almost two months "told the shareholders’ story".
"It’s becoming an expensive exercise for them, [Healthcare Partners] and also expensive, given the lack of traction," Mr McIntyre said.
Mr Janes said there was still an outstanding and overdue debt to Abano of $185,000 from Healthcare, and the Abano board was taking steps to ensure it was "paid promptly and without further delay".
Healthcare had extended its offer to March 3, prompting Mr Janes to remind shareholders yesterday of the board’s recommendation to reject Healthcare’s offer.
