Promisia Healthcare to Acquire Chatswood Retirement Village for NZ$25 Million
Promisia Healthcare (NZE:PHL) agreed to conditionally acquire the two companies that own and operate Christchurch's Chatswood Retirement Village in a NZ$25 million deal, subject to shareholder, regulatory and New Zealand Exchange approvals, according to a Thursday New Zealand bourse filing.The facility includes 100 accommodation units, comprising 29 care beds, 42 care suites, and 29 serviced apartments, offering rest home, hospital-level, and assisted-living care, per the filing.The acquisition is expected to provide an immediate lift to the company's earnings and cash flow, with annual underlying earnings before interest, tax, depreciation, amortization, and fair value adjustments projected to increase by around NZ$2.3 million to NZ$2.8 million, the filing said.The company will fund the acquisition with NZ$24 million in cash, NZ$500,000 worth of shares issued to Chair Rhonda Sherriff, and a NZ$500,000 convertible note issued to the other vendor.The acquisition is scheduled for completion on Oct. 1, the filing added.
