Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

ElderCare banks $1.3M for Southern Petroleum shares

By Phil Boeyen, ShareChat Business News Editor

Monday 9th April 2001

Text too small?

Healthcare company ElderCare (NZSE: ELD) is to receive $1.3 million from Fletcher Energy for its preference shares in Southern Petroleum.

The settlement ends the ongoing discussions between the two companies over the value of Eldercare's holding in the formerly publicly listed company, which was taken over by Fletcher subsidiary Petroleum Industries in 1995.

ElderCare and Fletcher have been negotiating an out of court settlement of the shares since September last year.

ElderCare chairman, Maurice Kidd, says the company is happy with the outcome.

"We believe that the settlement reflects a fair value for the preference shares."

Mr Kidd says resolving the matter with Fletcher Energy is in line with the company's strategy to realise non-core assets and concentrate on its future as a listed healthcare operating company.

"Since November 2000 this rationalisation programme has released $6.6 million in cash to the company.

"We will be making additional announcements in coming months as we conclude more asset sales and release more cash for our planned expansion into the wider healthcare sector."

Under terms announced last year both ElderCare and Fletcher Energy will pay their own costs relating to the settlement.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.