27 Aug 2014

Consortium lifts Acurity takeover offer

7:11 am on 27 August 2014

The consortium led by Mark Stewart, Connor Healthcare, has raised its take-over offer for Acurity Health by 75 cents per share to $7.25, valuing the private hospital operator at more than $125 million.

The revised offer has won the support of Acurity's independent directors after the independent expert, KordaMentha, valued the shares between $6.69 and $7.75.

Those independent directors note the shares have traded as low as $3.93 in the past year.

Acurity owns the Wakefield and Bowen hospitals in Wellington, the Royston hospital in Hastings, 60 percent of the Grace Hospital in Tauranga and has a 30 percent stake in specialised medical facilities in Epsom, Auckland.

Mr Stewart said the consortium wanted the support of the independent directors and to provide an offer that fell well within the range of the KordaMentha report.

Connor Healthcare already owns nearly 71 percent of Acurity.

Get the RNZ app

for ad-free news and current affairs