On Friday, Australian-owned private equity firm Archer, with the support of Abano director Peter Hutson, approached the group to reactivate its previous unsolicited indicative purchase proposal.
The proposal had not materially changed but included a downwards adjustment of the indicative price range to $6.97 to $7.14 per share, to take into account the recent 13.7% dividend and capital raisings.
The shares last traded at $6.55.
Abano's audiology business was to be divested after the sale, for a nominal sum, to interests associated with Mr Hutson.
Mr Janes said Archer's indicated price range fell well below the level the board considered reflected fair value for a 100%-control transaction, particularly in light of prices recently paid for consolidated dental businesses in Australia and the various growth stages of each of Abano's existing businesses.
''The independent directors of the board are confident in the company, its management, strategic plan and its own assessment of long-term value creation.
"The board does not believe Archer's involvement would yield any benefit other than a potential short-term liquidity option for shareholders.''
Archer was not restricted from pursuing any takeover initiatives provided for under New Zealand law if it wished to do so, Mr Janes said.
Forsyth Barr broker Haley Van Leeuwen said Archer Capital had identified the dental sector as an area in which it wished to invest.
As Abano was the second-largest operator in the Australasian dental sector, it was seen as a good ''vessel'' to enter the market.
Archer had asked for commercially sensitive information on Abano for its due diligence.
''Given their intent to enter the dental market and potentially become either a future competitor or owner of Abano, you can imagine there is a very slim chance of this information being handed over,'' Mrs Van Leeuwen said.
There would be questions asked of the long-term relationship between Mr Hutson and the board, Mrs Van Leeuwen said.
''I would find it hard to believe it's a comfortable position. Hutson's invested interest in Abano sits at about 15%, which puts the board in a difficult position.''
Abano remained focused on expanding the Lumino dental brand throughout New Zealand and Australia. The dental market in New Zealand was worth $650 million, while the Australian market was estimated to be worth $A7.5 billion ($NZ8.5 billion).
Abano saw good opportunities within the corporate dental sector, Mrs Van Leeuwen said.
Forsyth Barr expected to see increased corporate consolidation in the dental market, she said.
