1 Jun 2012

Brain injury rehab business sold

6:57 am on 1 June 2012

Abano Healthcare has sold its brain injury rehabilitation business for an undisclosed amount after being approached by Bupa Care Services.

The company says it has been sold for more than its book value, and the proceeds will be invested in its dental, radiology and audiology businesses, as well as on reducing debt.

Abano managing director Alan Clarke says the offer triggered a review of its business.

"We arrived at a conclusion that if Bupa could pay a consideration that meant we recovered our investment value that we would be very happy with them as stewards of the business going forward".

But the shareholders won't be getting any cash from the sale of the business, even though it sold for more than its book value.

In the past, Abano paid handsome dividends to shareholders following the sale of Bay Audiology and ElderCare.

Mr Clarke says proceeds from the sale will go towards reducing the company's debt and financing the growth of its audiology, radiology and dental business.

He says the firm has been concentrating on private health care delivery and it has been heavily investing in its New Zealand and Australian dental businesses and in radiology in New Zealand.

"We see far more scalability and growth opportunities there for the company than we did in the brain injury business".