Sharechat Logo

Abano extends Wellington pathology contract by a year in $26 mln deal

Thursday 17th October 2013

Text too small?

Abano Healthcare, the specialist medical investor facing a takeover bid from interests associated with its biggest shareholder, has extended its contract to provide Wellington district health boards with pathology services for another year.

Aotea Pathology has extended its contract with the Hutt Value and Capital & Coast district health boards until October 2015 in a deal worth just over $26 million, Abano said in a statement. The extension will give the DHBs some room to review their services as they look for the most cost-efficient means to source pathology and lab services in the region.

"The DHB review is important to ensure that there continues to be a professional, high quality medical service for the greater Wellington area, which provides best value for money," Abano managing director Alan Clarke said. "We hope that this may lead to longer term contract tenure which would be to the benefit of all parties."

The Abano unit got a three-year extension in 2010 worth $75 million. The locally-listed company holds a 55 percent controlling stake in Aotea Pathology, with the remainder held by Sonic Healthcare.

Abano shares were unchanged at $6.76 in trading today.

BusinessDesk.co.nz



  General Finance Advertising    

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.

Related News:

Broader review powers eyed for Climate Change Commission
MARKET CLOSE: NZ shares edge lower as global ructions weigh; Tourism Holdings sinks
NZ dollar rises as markets bet on US interest rate cut
Fonterra seeks further changes to dairy act
Tilt, Oji say transmission changes may discourage new generation
Tourism Holdings shares fall to 6-week low as US margins shrink
Venture capitalists split on govt picking winners
21st October 2019 Morning Report
Kiwi dollar steady as markets await Brexit developments
Domestic AGMs, multi-national earnings to provide economic insights

IRG See IRG research reports