Abano seeks $NZ18.5m from investors

HEALTH clinic investor Abano Healthcare is seeking to raise up to $NZ18.5m to help fund further acquistions in Australia and New Zealand.

ABANO Healthcare, the specialist health clinic investor facing a potential takeover, wants to raise up to $NZ18.5 million ($A16.26 million) in a share purchase plan and placement to institutions and eligible investors.

The Auckland-based company raised $NZ9.25m at $NZ5.95 a share in an underwritten placement to selected institutions and sophisticated investors, and is seeking another $NZ9.25m from shareholders at the same price, it said in a statement on Wednesday.

That's a discount of 8.6 per cent on the last trading price of $NZ6.51.

"We remain in acquisition growth mode, especially in dental in both Australia and New Zealand, with a number of acquisition opportunities," chairman Trevor Janes said.

"This capital raising will ensure we have the capacity to continue to invest into dental and our other businesses. It will provide Abano with the flexibility to fund other opportunities as they arise."

The company batted away an informal proposal from a third party linked with director Peter Huston offering more than $NZ100m to buy the company, and will probably face a takeover bid by the group, which wants to invest and operate in the Australasian dental sector.

Forsyth Barr was the underwriter of the placement, and allotment of the new shares is scheduled for September 2.

The share purchase plan will open on September 13 and close on October 1, with $NZ5.75 million underwritten by Forsyth Barr.