An appraisal report says Metlifecare's proposed takeover bid for two of its retirement village competitors is fair to investors.
Two weeks ago, Metlifecare rejigged its $ 113 million plan to buy Vision Senior Living and Private Life Care after pressure from shareholders.
Under the revised deal, Vision and Private Life gets less shares upfront and have to hold the stock for 16 months, while Metlifecare will issue extra stock to Vision if it meets certain share price targets.
Metlifecare will also raise up to $15 million from other investors and use the money to repay debt.
Appraiser Northington Partners says that, overall, the total price paid for Vision and Private Life detracts slightly from Metlifecare's underlying value.
But Northington says there's more to the deal than that, which investors should benefit from.
The appraiser says if the extra stock given to Vision's shareholders is excluded the offer is mildly positive to Metlifecare's investors.
The deal has other attractions, including expanding Metlifecare's size in the market, boosting revenue, and broading the company's share base.