18 Dec 2014

Group reapplies for clearance of takeover

2:26 pm on 18 December 2014

The consortium led by the businessman Mark Stewart has re-applied for regulatory clearance to take over Acurity Health.

The consortium will be hoping the Commerce Commission gives its new application a speedy response, because if it can't declare the takeover unconditional by next Monday, it will lapse.

The Commerce Commission declined the consortium's first application on the grounds that the consortium would control three of four private hospitals in the Wellington region.

That's because a 25 percent shareholder in the consortium, the Sydney-based Evolution Healthcare, already operates the Boulcott Hospital in Lower Hutt and Acurity owns the Bowen and Wakefield hospitals.

The new application includes an undertaking that Evolution will sell down its stake in the consortium to 11.7 percent, the same percentage that Evolution already held in Acurity before the takeover was launched, to the other consortium partners.

The consortium's takeover offer, valuing Acurity at more than $125 million, has already received acceptances covering more than 97 percent of the shares.

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