New Zealand based pharmaceutical company Abano Healthcare Group (NZE: ABA) has announced having entered into a purchase agreement worth $80 million with a consortium.
This new agreement comes months after a similar deal was thwarted following decreased performance by the provider of medical services due to the pandemic. The revised deal will be an all cash deal.
The involved consortium is owned by Ontario Teachers’ Pension Plan Board and Private equity firm BGH Capital. The consortium will be paying NZ$4.45 per one share of Abano Healthcare, this value is on the lower end compared to a March offer of NZ$5.70.
Citing records from New Zealand Stock Exchange, Abano’s equity is currently valued at NZ$117 million ($78.78 million).
The March offer was thwarted after many of the company’s normal operations were halted due restrictions imposed by the government to combat spread of the deadly virus. This situation significantly affected valuation of the company.
Unlike the March offer, the new offer removed the rights of buyers to terminate the deal in a possible scenario whereby Abano’s operations are affected again. Additionally the deal represents a 70% share premium of Abano’s stock last closing price.