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Promisia Integrative gets green light for aged care facility acquisitions

Fuseworks Media
Fuseworks Media

The documentation consists of a notice of special meeting, a listing profile and an independent report on the acquisition by Simmons Corporate Finance. This documentation has been released on NZX and is being sent to shareholders today in advance of a Special General meeting on 11 June 2020 to seek shareholder approval. Further financial information is also available on the Promisia website.

NZX-listed Promisia Integrative (NZX:PIL) announced today it has received the regulatory approvals required to issue reverse listing documentation for acquiring three aged care facilities from Brankin Family Trust for $31.385 m, and for leasing a fourth with an option to buy.

The acquisition will cover the business and assets of Ranfurly Manor and Nelson Residential Care Centre in Feilding and Eileen Mary Residential Care Centre in Dannevirke - a total of 280 beds.

Promisia will also acquire a long-term lease of Aldwins House in central Christchurch. The building operated as an aged care facility but was damaged severely in the Christchurch earthquake. It has been strengthened and refurbished and is expected to reopen this year as a 147-bed rest home/hospital. An option to purchase the property is included in the acquisition.

Promisia Chairman Stephen Underwood says gaining regulatory authorities’ approvals for the transaction documentation marks an exciting milestone for Promisia following its decision late last year to change the essential nature of its business to become an owner and operator of retirement villages and aged care facilities.

"These facilities have experienced growth, even during the COVID-19 period, which gives the company an excellent opportunity to retain - and strengthen - its position".

"It’s a major and very positive step forward for Promisia and our shareholders."

Promisia expects the transaction will be completed soon after shareholder approval. Existing shareholders will be given the option to purchase additional shares before the end of 2020 at the same price as an initial placement to wholesale investors.

Mr Underwood says the finalisation of Promisia’s move into aged care has enabled the company to leverage its NZX listing and introduce a profitable business that is robust, sustainable and scalable.

"There is significant potential to develop and expand aged care facilities in New Zealand, particularly with New Zealand’s aging population. The proposed transaction’s strong growth prospects represent an attractive opportunity to create value for PIL’s shareholders."

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