High Court gives green light to Swedish investor to buy Metlifecare for $1.3 billion

Tuesday, 20 October 2020

Orion Point Retirement Village in Hobsonville, Auckland, is being planned by retirement village operator Metlifecare.

Large retirement village operator Metlifecare is to be sold to a Swedish investor for $1.3 billion after the High Court approved a plan to do that.

Metlifecare said the High Court had decided to issue final orders approving a scheme of arrangement between Metlifecare and Asia Pacific Village Group, owned by Swedish investor, EQT Infrastructure.

Trading in Metlifecare shares on the NZX and ASX would be suspended on Friday, October 23 at the close of trading.

Holders of Metlifecare on the record date, October 29, would be entitled to receive the $6 a share offer from Asia Pacific to be paid on Tuesday, November 3.

*Metlifecare shareholders are being urged to vote on foreign takeover

*Metlifecare launches legal action to force completion of a $1.4 billion takeover

*Metlifecare gets new offer from Swedish suitor

*Metlifecare comes to an agreement with EQT to buy its shares for $6 a share

Metlifecare shareholders who did not wish to participate in the $6 a share scheme must sell their shares before the close of trading on October 23, the company said.

Metlifecare would be delisted from the NZX and ASX on November 3 at the close of trading, almost a year after Asia Pacific made its first move to buy 100 per cent of Metlifecare.

It is one of the big six retirement village operators in New Zealand. It has 25 villages, all in the North Island, which are home to about 5600 residents.

Asia Pacific’s first offer for $7 a share was terminated in April with Asia Pacific arguing Covid-19 had impacted the value of Metlifecare.

Metlifecare’s board mounted a legal challenge to that and Asia Pacific responded in July with a second lower $6 a share deal, accepted by 19.9 per cent shareholder the New Zealand Super Fund and a majority of Metlifecare board members, but not chairman Kim Ellis.

At a virtual special meeting in early October just over 90 per cent of the shareholder votes cast supported the $6 deal.