Metlifecare to Undertake Capital Raising

Metlifecare Limited Ordinary shares | 5:24 pm, 12 Feb

MET
2.150
0.000
(0.00%)
Market Announcement
Type:RIGHT

Following an announcement to NZX on 23 December 2008 of a planned capital raising, Metlifecare Limited (“Metlifecare”) is to make a pro rata renounceable rights issue for up to NZ$37.8m (the “Offer”). The Offer will be made to existing Metlifecare shareholders who hold shares on the Record Date.

The terms of the intended Offer comprise one new share for consideration of $1.08, with entitlements to subscribe for shares (“Rights”) based on 2 Rights for every 5 shares held on the Record Date, which is 5.00pm (NZ time) on 27 February 2009. This entitlement ratio will result in a maximum of up to 34,979,417 new shares being issued. Upon allotment, the new shares will rank equally with existing shares. Trading of Rights is expected to commence on 2 March 2009, closing on 25 March 2009.

An Investment Statement and Prospectus (“Offer Document”) will be lodged with the New Zealand Companies Office prior to the opening of the Offer.

The rights issue will be made pursuant to the Offer Document, which is expected to be dispatched to existing shareholders over the week beginning 2 March 2009. Eligible shareholders who wish to participate in the Offer will need to complete the Entitlement and Acceptance Form accompanying the Offer Document in accordance with the instructions set out in the Offer Document. As the Rights will be renounceable, Eligible Shareholders will also have the alternative of selling their Rights.

Metlifecare will use the proceeds of the capital raising to reduce the Company’s existing bank debt in order to strengthen the balance sheet. Metlifecare is currently negotiating the terms of new banking facilities to apply from 1 April 2009 and will suspend the payment of dividends until at least 30 June 2010.

Metlifecare’s largest shareholder, Retirement Villages New Zealand Limited, which holds an 81.98% shareholding, has confirmed that it will participate in the raising for its full pro rata entitlement and that it has received OIO approval to do so.

Key dates in the current proposed timetable for the Offer are as follows:

Record date 5.00pm (NZ time), 27 February 2009
Rights trading commences 2 March 2009
Rights trading closes 25 March 2009
Offer closes 27 March 2009
Allotment date and issue of new shares 31 March 2009

-End-

Contact:
Richard de Haast
Chief Executive Officer
Metlifecare Limited
Ph 09 539 8033