Norfolk Investments is recommending investors accept a takeover offer from Wakefield Health, saying the bid is fair and reasonable.
Wakefield is offering $3.80 a share, valuing Norfolk at $24.2 million.
An appraisal report by Grant Samuel says the offer is at the top end of its valuation range of $3.25 - $3.83 a share.
The private hospital operator has secured 71% of the shares in pre-bid agreements with 36 shareholders.
Norfolk owns 60% of the Grace Hospital in Tauranga with the balance owned indirectly by Southern Cross Hospitals.
