11 Nov 2014

AMP extracts tax credits for Acurity

10:32 am on 11 November 2014

AMP Capital Investors has extracted nearly half a million dollars in tax benefits as a condition for it accepting a consortium's takeover offer for Acurity Health in which it has a stake.

Prominent businessman, Mark Stewart, and co-investors the Royston Hospital Trust Board and Sydney-based Evolution Healthcare already own nearly 71 percent of Acurity and are offering $6.50 a share to buy the rest.

AMP Capital Investors, which controls nearly 5.6 percent of Acurity, has made its acceptance of the offer, which values Acurity at more than $125 million dependent on Acurity making a bonus share issue, which would make use of the tax credits Acurity has amassed.

Acurity will need to issue two new shares for every 11 existing shares to make use of those credits which would otherwise lapse with the change of ownership.

The bonus issue will not make a material difference to the price Mr Stewart's consortium pays.

Mr Stewart said AMP's acceptance takes his consortium's stake to 86.3 percent and he said he was reasonably confident the takeover would succeed. He said the takeover would still need the Commerce Commission's approval.

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