27 Aug 2009

Abano to sell audiology business

12:02 pm on 27 August 2009

Abano Healthcare is selling its New Zealand audiology business to an Australian company for $158 million.

Abano says it will gain $118 million dollars on the sale to National Hearing Care, which it will use to repay debt and to buy back shares.

Crescent Healthcare, which owns National Hearing Care, already has a 19% stake in Abano.

The deal will allow Abano the right to purchase around 15% of the new New Zealand entity which is being created.

Abano Healthcare managing director Alan Clarke says the sale is conditional on shareholders approval at its annual meeting in October

The sale excludes all of Albano's audiology operations outside New Zealand, including those in Australia, Singapore, Hong Kong and Malaysia.