Sharechat Logo

Quadrant selling down 37.2 percent stake in Summerset; shares halted

Friday 17th May 2013

Text too small?

Summerset Group shareholder Quadrant Private Equity is selling down its 37.2 percent stake in the retirement village operator, taking advantage of the stock's 34 percent advance this year.

QPE Funds Management, the Quadrant unit that holds the shares, "is in the process of selling part of its shareholding," Summerset said in a statement. QPE has asked Summerset to seek a trading halt for the transaction to proceed.

Shares of Summerset last traded at $3, valuing the company at $654 million, and have soared along with those of peers Ryman Healthcare and Metlifecare as investors are drawn to a sector with good growth prospects as the population ages.

Quadrant floated Summerset on the NZX in 2011, raising $123.6 million, made up of a partial sell-down and a primary capital raising of $50 million. The Australian private equity firm completed its full takeover of Summerset in 2010, buying the 50 percent it didn't own from fund manager AMP Capital Investors New Zealand.

An escrow period, preventing Quadrant from selling, ended in February, and it sold 40 million shares at $2.42 apiece in March. Last month, Quadrant managing director Chris Hadley said his buyout firm would reduce its holding in Summerset in a "very sensible fashion."

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:

High Court orders Forestlands IRD debt can be paid from $18M funds in trust; liquidation sought by FMA
April 23rd Morning Report
NZ dollar falls near 72 US cts as growing inflationary pressures drive up US Treasury yields
World Week Ahead: Gearing up for tech earnings
MARKET CLOSE: NZ shares fall as MSCI changes debated, Mercury falls, Fletcher gains
NZ dollar heads for 1.6% weekly fall as greenback finds favour on rate hike view
FMA keeping close tabs on Australian Royal Commission as AMP chief Meller departs
NZ's R&D tax incentive plan viewed as positive by business
SkyCity wants at least A$200M for Darwin casino; private consortium most likely buyer: report
Syft sales jump more than 50%, profit growth misses target on production costs

IRG See IRG research reports