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Metlifecare shareholders vote in favour of amended merger deal

Thursday 21st June 2012

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Metlifecare shareholders have voted in favour of an amended merger proposal, after the retirement village operator reduced the amount of shares it will use to pay for the deal and abandoned plans to raise new equity capital.

“The merger is a significant milestone for the company and brings with it a number of benefits for Metlifecare and our shareholders”, Brent Harman, managing director said in a statement.

Metlifecare amended changes to its proposal this morning winning over the majority of institutional investors. Its initial proposal was criticised as being too generous to major shareholders.

Metlifecare will get eight new rest homes 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.

Retirement Villages New Zealand, Metlifecare's biggest shareholder, is selling down its stake in the retirement village operator.

Shares in Metlifecare have shed about 5 percent this year and are currently trading at $2.16.

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