Metlifecare, the retirement village operator, has completed the bookbuild for the selldown of shares by its biggest shareholder, Retirement Villages New Zealand, at a 2.2 percent discount to their last trading price.
The bookbuild was set at $2.20 apiece compared to Metlifecare's closing price yesterday of $2.25. It reduces RVNZ's holding in the company to 43.2 percent. The bookbuild satisfies the final condition for Metlifecare's merger with Vision Senior Living and Private Life Care and has already been approved under the Overseas Investment Act and by shareholders.
"The support for the offer has been very strong and whilst we have not been able to satisfy all investor demand received, we have achieved a number of RVNZ's objectives, including broadening the Metlifecare share register," chairman Peter Brown said in a statement. "We believe the continued support of our new and existing shareholders should also assist in obtaining better value recognition for Metlifecare through our share price over time."
Metlifecare will get eight new villages in the merger with Vision and Private Life Care Holdings, which are to receive shares in the enlarged company as payment. That boosts its portfolio to 24 villages, three of which are in development. The number of units will increase to 3,902 from 2,460, while brownfield and greenfield capacity climbs to 1,011 units from 380 units.