It is the second unsuccessful attempt by Healthcare Partners, representing Peter and Anya Hutson and James Reeves, to wrest control of Abano from its board.
The play is likely to cost Healthcare Partners more than $1million, given Abano's board had withheld $700,000 in dividends to Healthcare, which before the takeover offer already held 19.02% of Abano.
Healthcare Partners now faces a costs claim of a further figure, more than $377,000, with final costs yet to be determined.
Healthcare wanted to increase its 19.02% to a minimum but controlling stake of 50.1%, but since the takeover was launched last October, at $9.94 a share, the shareholder acceptances tallied only 2.35% - totalling just 21.37%.
In a regulatory sharemarket notice yesterday, Peter Hutson noted only that the offer had lapsed, without becoming unconditional and Healthcare Partners' stake in Abano had reverted to the original 19.02%.
Abano shares were up 23% during the past year, sitting at $8.90 yesterday.
Abano chief executive Richard Keys said in a statement Abano's board and management were pleased the distraction of the hostile bid was over and they remained focused on continuing to grow the company.
Abano's rapid transtasman growth rate, through acquisitions using debt, topped 200 in January, with about 100 each Lumino practices in New Zealand and Maven practices in Australia, with a further 30 purchases pencilled in for this year.
Healthcare Partners wanted to rein in the spending spree and address debt.
Mr Keys said Abano had incurred ``significant external costs'', incurred in responding to the Healthcare offer, and under the Takeovers Code, those costs would be reimbursed by Healthcare Partners.
As of yesterday, those costs were ``outstanding and overdue'' at more than $377,000 with final costs still to be charged, Mr Keys said.
``The Abano board doesn't believe it is reasonable for Abano and its shareholders to be funding these ongoing costs for Healthcare Partners.
``The board will continue to seek to ensure this is paid promptly and without further delay so as not to further disadvantage Abano's shareholders,'' Mr Keys said.
Mr Hutson and Mr Reeves have been lobbying for change at Abano for several years, supporting an informal takeover bid in 2013 by Archer Capital at $6.97 a share, which would have seen the Australian private equity firm take the healthcare investor's dental businesses and hand the audiology units to Mr Hutson for a nominal sum, BusinessDesk reported. The offer was turned down by the Abano board as being too low.
Archer was refused due diligence access because it could become a direct competitor to Abano, and Mr Hutson left the board.
That bid also attracted attention from the Financial Markets Authority over the way the market was told of the plans, although a civil suit was dropped and each side bore their own costs when the regulator deemed it wasn't in the public interest to pursue a case, BusinessDesk reported.
Mr Hutson and Mr Reeves later tried to oust Abano chairman Trevor Janes, calling a special meeting of shareholders, though the resolution was voted down, and they unsuccessfully opposed Janes' re-election at the company's latest annual meeting.
