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Wakefield makes full takeover of Grace Hospital owner Norfolk

Tuesday 11th May 2010

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Wakefield Health, the owner of Wellington’s Bowen and Wakefield hospitals, will make a full takeover offer for Norfolk Investments for $22.6 million, gaining control of Tauranga’s Grace Hospital.

Shareholders in Norfolk include Wakefield’s chairman John Calder, with a 7.5% holding, who has committed to sell into the offer. Under NZX listing rules, Calder’s acceptance of the offer constitutes a related party transaction.

NZX regulation has granted the company a waiver to allow the deal to proceed without going to a shareholder vote, provided that directors not associated with Calder vouch that it is fair and in Wakefield’s best interests.

The offer values Norfolk at $3.6438 a share including a fully imputed dividend of 10.73 cents a share. Norfolk owns 60% of Grace Hospital, with the balance owned by Southern Cross.

Shares of Wakefield fell 0.1% to $7.01 and have declined 22% in the past six months.

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