Sharechat Logo

APVG notice it wishes to terminate scheme

Wednesday 8th April 2020

Text too small?

Metlifecare Limited (NZX: MET , ASX: MEQ) advises that late last night it received notice of an intention to terminate its scheme implementation agreement (SIA) with Asia Pacific Village Group Limited (APVG) in around 10 business days.

APVG has asserted that COVID-19 is a specified event triggering the “Material Adverse Change” (as defined on page 55 of the SIA) (MAC) clause because it has reduced or is reasonably likely to reduce the consolidated net tangible assets of Metlifecare by at least $100m and/or that it is reasonably likely to reduce the consolidated underlying net profit (as described in the MAC clause) of Metlifecare by at least 10% in FY20, and/or FY21 and/or FY22 against what it would reasonably have been expected to be but for the COVID-19 event.

APVG has also asserted that Metlifecare has not provided some information to APVG and made decisions in relation to its response to Level 4 Government directives without consultation and/or consent of APVG, contrary to clauses 9.2 and 9.3 of the SIA.

Metlifecare is taking legal advice on the APVG correspondence, but its initial view is that the assertions are without substance and that APVG does not have a lawful basis to terminate the SIA.

Metlifecare will be making no further comment at this stage.

This announcement is authorised for release to the market by the Board of Metlifecare Limited.



  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:

COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax
U.S. Can Destroy Huawei, Part Two
Green Recovery Could Create 850,000 British Jobs, Report Finds
RBNZ Warns Banks’ Ability to Absorb Shocks ‘Is Not Unlimited’
Trustpower makes solid progress in challenging year
Air New Zealand liquidity and 2020 earnings update
THL begins New Zealand Restructuring process
The customer is always right
The modern era of globalisation is in danger

IRG See IRG research reports