Strong shareholder support for Abano share purchase plan

Abano Healthcare Group Limited (NZX:ABA.NZ - News) advises that its Share Purchase Plan (SPP) offer, to raise up to $9.25 million, has now closed and was heavily over-subscribed. The issue price has been confirmed at $5.95 per share.

The SPP received strong shareholder support, with Abano receiving applications totalling $23.8 million, and exceeding the offer maximum of $9.25 million by over 250 percent. Applications will be scaled back on a proportionate basis in accordance with the terms of the SPP offer.

The SPP was part of an $18.5 million capital raising undertaken by Abano, and followed the successful $9.25 million placement to selected institutions and other eligible persons which was completed on 2 September 2013.

Chairman of Abano, Mr Trevor Janes, said: "We are very pleased with the support we have received from our existing shareholders, reflecting their confidence in our growth strategy and the value of our company.

"Dental offers a significant opportunity and remains our primary focus for growth. The trans-Tasman dental market is very large and we remain in acquisition mode in both Australia and New Zealand as we build on our position as the second largest Australasian dental provider.

"Since year end, we have expanded our trans-Tasman dental network to 145 practices through the acquisition of eight practices providing over $18 million in additional annualised gross revenues.

"The capital raised will be utilised in the continued growth of our dental and other businesses".

The SPP closed on 1 October 2013 and shares will be allotted on 8 October 2013.