We Cannot All Be Targets, Says Primelife

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By Rudi Filapek-Vandyck

Investors punting on Babcock & Brown (BNB) launching a takeover bid for retirement village and aged care facilities operator Primelife Corp (PLF) may want to revisit their strategy as the company’s secretary (Primelife’s not Babcock’s) has been quick to dismiss a story in today’s Australian Financial Review announcing such an offer may be imminent.

In a statement to the Australian Stock Exchange company secretary Gregor Dixon said Primelife was continuing talks with Babcock & Brown, but any sorts of merger or takeover was not part of the negotiations.

Primelife and Babcock & Brown seem to share a common interest in wanting to establish a specialised investment vehicle aimed at the retirement village and aged care sector. It was announced in late February both companies had engaged in discussions. Current plans would still involve some sorts of a tie-up between Primelife and Primeliving Trust, today’s announcement reconfirms, as well as other acquisitions.

In case of the latter, this could “impact the structure and timing of the finalization of any proposal”. An announcement about this is expected to be made “in the near future”, but as said before, any deal won’t include a merger or takeover (says Primelife).

The Primelife statement did not give anything away about what form the possible co-venture would take. But maybe that’s still part of the negotiations?

Primelife shares were unchanged at noon at $1.11 but trading volume was above usual. The overall share market is weaker.

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