21 May 2012

Takeover offer revised

12:15 pm on 21 May 2012

Metlifecare has scaled back its offer to buy two of its rivals, after pressure from shareholders.

Metlifecare last month announced plans to buy Vision Senior Living and Private Life Care by issuing shares worth about $113 million, making it bigger than Ryman Healthcare, its main rival.

Managing director Alan Edwards says the company received general support for the initial proposal, but institutional investors raised some concerns.

The revised terms of the deal mean Vision shareholders will be paid 13 million Metlifecare shares, compared with the 21 million previously offered, while Private Life Care's shareholder will get 29.7 million shares, down from 30.5 million.

Vison shareholders will get an extra seven million shares if the company's share prices exceeds $3 within 28 months of the merger, but under the new deal, they will be held in account for 16 months.

An appraisal report on the revised offer is expected to be sent to shareholders shortly.