The hostile $10-a-share takeover bid for Abano Healthcare will shrink, as those making the takeover offer agree to let the company pay its estimated 11c to 16c interim dividend, deducting it from the $10 offer.
Dissident shareholder group Peter and Anya Hutson and James Reeves, through their entity Healthcare Partners, already have a 19% stake in Abano, but in early November launched the $10 bid to gain a controlling 50.01% shareholding.
Abano's board yesterday announced it would pay the interim dividend, of 11c to 16c per share, for the six months ending in November.
The Hutsons and Mr Reeves had previously prohibited the payment of Abano's usual interim dividend, in both their initial takeover offer, then in the corrected partial takeover documents they submitted.
Abano's board said yesterday the trio said they would approve a dividend payment, on the basis it was deducted from the $10 offer price for the shares acquired by Healthcare Partners.
Abano expected Healthcare Partners' offer price would reduce to between $9.84 to $9.89, for the 30.99% stake being sought.
Abano's interim results are scheduled for release in mid-December.
Abano's board said yesterday it expected an increase of at least 35% in underlying net profit after tax for the first half of 2017, of between $5 million to $5.6 million, with an interim dividend in a 11c to 16c range.
Late last week, Abano's board had asked its shareholders to hold off making a decision on whether or not to sell, until the board's recommendation and a separate, independent adviser's's report were released.
