Big moves in NZ aged care ahead of Oceania IPO – The Australian Financial Review

Metlifecare was not the only capital markets deal in New Zealand aged care on Thursday.

It's amazing how often one company's IPO marketing makes way for an already listed rival to tap capital markets.

With Macquarie's Oceania Healthcare in the market educating Australian fund managers about the New Zealand aged care sector ahead of a sharemarket listing, rival retirement village owner Infratil spotted an opportunity.

Infratil owns 20 per cent of Metlifecare, New Zealand's second largest retirement village owner behind the $NZ4.4 billion listed Ryman Healthcare.

And that Metlifecare stake, worth about $NZ250 million, was on the block on Thursday night, with brokers seeking Australian fund managers to bid into the selldown book, as first reported by Street Talk.

It is understood Kiwi broker Forsyth Barr secured the trade at $NZ5.61.

The block trade markedan opportunistic move ahead of Oceania's bookbuild scheduled for next week. It madesense for Infratil to sweep the market for any demand,offering investors a company they already know and management team they can trust.

Interestingly, it was not the only capital markets deal in New Zealand aged care on Thursday.

As this column also revealed, Australian private equity firm Adamantem Capital made its maiden investment by picking up a controlling stake in Heritage Lifecare.

Heritage is a New Zealand aged-care and retirement village operator with 969 beds and 320 living units under management, across 19 facilities.

Heritage Lifecare's existing shareholders, including members of the board and the management team, will retain a stake in partnership with Adamantem

The acquisition values Heritage Lifecare at an enterprise value of NZ$115 million.

It's the first deal for Adamantem, the Sydney-based private equity firm set up by former Pacific Equity Partners dealmakers Anthony Kerwick and Rob Koczkar.

Adamantem reached first close on its new fund late last year, and is expected to hit a final close at about $600 million in coming months.

There is plenty of interest among private equity investors and Adamantem's rivals to see how the new firm fares. Kerwick and Koczkar were well regarded at Pacific Equity Partners, working on deals including Spotless, Griffin's Foods, Energy Developments and Tegel Foods.

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Big moves in NZ aged care ahead of Oceania IPO - The Australian Financial Review