Oceania Healthcare (ASX:OCA) launches equity raise to fund acquisitions

• Oceania Healthcare (OCA) is looking to raise NZ$100 million (around A$92.5 million) to purchase an independent living retirement village in Auckland as well as adjacent development land 
• The acquisition of Waterford on Hobsonville Point — which has 64 villas and 36 apartments — is conditional, whereas the acquisition of the Franklin property is unconditional and expected to settle by June 
• Oceania will net NZ$80 million (about A$74 million) via a fully underwritten placement and is looking to raise the remaining funds via a non-underwritten retail offer 
• Placement shares will be issued at around NZ$1.30 (roughly A$1.20) each, and retail offer shares will be priced at the lower of the placement price of the five-day volume-weighted average price
• OCA has been trading flat early in the session at $1.37

Oceania Healthcare (OCA) is looking to raise NZ$100 million (roughly A$92.5 million) to purchase an independent living retirement village in Auckland as well as adjacent development land. 

The acquisition of Waterford on Hobsonville Point — which has 64 villas and 36 apartments — relies on the consent of the statutory supervisor and is expected to settle in April or May.

The acquisition of 6.1 hectares of land in Franklin, Auckland, on the other hand, is unconditional and expected to settle by June. 

Oceania will net NZ$80 million (around A$74 million) via a fully underwritten placement and is looking to raise the remaining funds via a non-underwritten retail offer. 

Placement shares will be issued at around NZ$1.30 (roughly A$1.20) each, and retail offer shares will be priced at the lower of the placement price or the five-day volume-weighted average price up to and including the closing date for the offer on April 12, 2021.

The combined proceeds will be used to fund both acquisitions and will also enable Oceania to reduce its outstanding debt and to assess potential growth opportunities.

OCA is trading flat at $1.37 at 10:19 am AEDT.