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Oceania Healthcare cornerstone shareholder Macquarie selling 15.6% stake

Wednesday 5th September 2018

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Oceania Healthcare's cornerstone shareholder Macquarie Group is selling down some of its shares for $102.6 million after restrictions on their sale were lifted in July.

Shares of the aged care and retirement village operator were halted from trading on the NZX and ASX this morning after Oceania Healthcare Holdings Ltd, the investment vehicle which owns the shares on behalf of Macquarie Group managed funds and senior managers, said it intends to sell up to 95 million shares, representing 15.6 percent of the company. That is only part of the 57.2 percent stake it owns.

Oceania Healthcare Holdings said it has entered into a block trade agreement with Deutsche Craigs, Craigs Investment Partners, First NZ Capital and Macquarie Securities to manage and underwrite the sale for $1.08 a share. The aged care company requested a trading halt until the sale has completed. 

Under the conditions outlined in its initial public offering last year, restrictions on the Macquarie stake were lifted on July 27, after Oceania reported its 2018 annual result.

Oceania's stock closed on the NZX yesterday at $1.14, ahead of the 79 cent offer price. That valued the 95 million shares at $108.3 million, compared with a value of $75 million at last year's offer price.

Among analysts polled by Reuters, two rate Oceania as a 'buy', and two rate it a 'hold', and the stock has a median target price of $1.20. 

Oceania said the smaller stake means the Macquarie entity will no longer be able to control the appointment of any directors to the board.


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