6 Jun 2012

Investors analyse Metlifecare appraisal

7:32 am on 6 June 2012

Investors are analysing an appraisal report that says Metlifecare's proposed takeover bid for two of its retirement village competitors is fair.

Two weeks ago, Metlifecare rejigged its $113 million plan to buy Vision Senior Living and Private Life Care after pressure from shareholders.

Changes include Vision and Private Life getting fewer shares upfront and haveing to hold onto the stock for a set time, and raising up to $15 million from other investors to reduce debt, while Metlifecare will issue extra stock to Vision if it meets certain share price targets.

Appraiser Northington Partners says that 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 and investors should benefit from expandion of Metlifecare's market share, higher revenue, and a broader share base.