AHG labels Pharmaust proposal "opportunistic"

The board of Advanced Health Care Group Ltd has advised shareholders to take no action in relation to a proposed takeover bid from Pharmaust and has labelled the move as "opportunistic".

In a letter to shareholders, AHG also said that its three largest shareholders, Hawkesbridge Ltd, HET No1 Pty Ltd and the Atkinson Family Superannuation Fund would not accept Pharmaust's 1.5 cents a share offer based on the current information available.

The three shareholders collectively hold over 40 per cent of AHG shares.

"Given one of the proposed conditions of Pharmaust's offer to AHG shareholders requires 90 per cent acceptance, it is highly unlikely this condition could be met, making the offer illusory," AHG said.

Pharmaust made a surprise $2.3 million merger proposal to AHG last week, which AHG claimed was not in the interests of shareholders.

It said private equity group Hawkesbridge Ltd had sold shares to Covenant Nominees at a price of 2.5 cents a share on January 8.

But Pharmaust has claimed its offer was 50 per cent above a recapitalisation agreement which was accepted by AHG shareholders in August in a contentious vote being disputed by PharmAust.

AHG said its board believed Pharmaust has attempted to mislead shareholders and has advised shareholders to take no action until such time that a formal offer has been presented.