EQT notifies NZ’s Metlifecare of intention to terminate takeover bid

Auckland, New Zealand. Photo by Dan Freeman on Unsplash

New Zealand’s Metlifecare on Wednesday said Swedish private equity firm EQT AB has made known its intention to terminate its buyout offer in 10 business days, citing potential impact from the coronavirus pandemic on Metlifecare.

Asia Pacific Village Group Ltd (APVG), a unit of EQT, in December had sweetened its bid for the retirement village operator to NZ$1.49 billion, at NZ$7 per share, NZ$0.50 richer than its earlier bid.

APVG, in a notice to the New Zealand firm, said the pandemic triggered the Material Adverse Change clause under the companies’ agreement because it has reduced or could reduce Metlifecare’s tangible assets and could reduce its underlying net profit by at least 10% in fiscal year 2020, and/or in the following two years, from what it was expected to be.

Metlifecare in March had confirmed that the scheme implementation agreement (SIA) contained limited termination events, and stated that the Material Adverse Change termination event definition “has high financial materiality thresholds.”

Metlifecare on Wednesday stated, “Its Initial view is that the assertions are without substance and that APVG does not have a lawful basis to terminate the SIA.”

The scheme was scheduled to be presented for shareholder approval on April 29, with implementation expected in May.

Reuters 

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.