6 Mar 2017

Abano partial takeover bid falls short

10:00 am on 6 March 2017

A hostile partial takeover offer by dissident shareholders for dental company Abano Healthcare has failed.

The bid was from Healthcare Partners, the vehicle for former director Peter Hutson and associates.

Abano said the bid to increase its stake to just over 50 percent from the current 19 percent expired on Friday, well short of its target.

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It said the offer of $10.16 attracted only another 2.3 percent of shares, which will now not be bought.

Abano also said it was chasing Healthcare for more than $377,000 in costs incurred in responding to the partial takeover offer, which it would seek to have reimbursed as required by the Takeovers Code.

The offer was initially made in early November and had to be officially launched three times for various technical reasons.

It renewed Mr Hutson's three-year battle with the company he unsuccessfully tried to take over in 2013, costing him his place on the Abano board of directors.

Abano sold its share in an audiology business to Mr Hutson last year and has since concentrated on buying dental practices trading under the Lumino brand in New Zealand and the Maven brand in Australia.

Mr Hutson said Abano had been underperforming, not earning enough from the dental practices, and had tripled its debt level.