Metlifecare has amended the terms of its merger proposal again, halving the shares it will issue to Vision Senior Living and flagging possible property sales as a way to repay debt rather than raising equity from third parties.
The 11th hour changes have won over the majority of institutional investors and the company is confident the merger will win support at a shareholder meeting today to vote on the plan.
The rest-home operator's initial proposal was criticised as being too generous to major shareholders, who are involved in the merger.
Metlifecare will get eight new rest homes in the merger with Vision and Private Life Care Holdings, which are to receive shares in the enlarged company as payment.
Under amendments announced on Thursday, the consideration for Vision shareholders is cut to 10 million shares from 20 million.
Instead of raising $10 million in equity from third-party investors, the company will now "rationalise its property asset portfolio to provide further headroom in its balance sheet," according to the statement from managing director Alan Edwards.
That move has the support of the company's bankers, he said.
NZN