ElderCare banks $1.3M for Southern Petroleum shares

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.

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