Consortium withdraws proposal to acquire Abano

Abano Healthcare Group Limited (NZX:ABA.NZ - News) announces that it has been made aware through the media that the Archer/Hutson/Reeves consortium has withdrawn its indicative non-binding and conditional proposal to acquire all of the shares in Abano.

As advised at Abano’s 2013 annual meeting held on 26 November 2013, the indicative and conditional price of $7.80 a share, which was provided verbally by an adviser to the consortium, was materially below the value range assessed by Grant Samuel in its independent valuation report of $8.30 to $10.05 per share for full control of the company. A copy of that report is available on Abano’s website www.abano.co.nz.

The consortium’s media release also states that the consortium members will now unwind the exclusivity deed under which interests associated with Peter Hutson and James Reeves had agreed not to sell their Abano shares.

The Abano Board is pleased that the Archer/Hutson/Reeves consortium has withdrawn its undervalued proposal, which has been the cause of significant distraction and cost for the company. The consortium’s media release contains a number of inaccurate and misleading statements; however, as the consortium has withdrawn its interest, Abano does not propose to address these matters at this time.