By Phil Boeyen, ShareChat Business News Editor
|
Thursday 26th July 2001 |
Text too small? |
Pacific Projects specialises in the design and development of retirement and aged-care facilities.
Eldercare says the sale is consistent with its intention of exiting the property development sector of the retirement industry to concentrate on acquiring fee income generating businesses in the wider healthcare sector.
Under the sale agreement ElderCare keeps a 50% interest in any future profits on the convertible note entitlements above 14.3 cents per share, issued in consideration for the purchase.
It will also keep a preferred supplier arrangement with the company.
ElderCare says the sale will result in a one-off goodwill write-down of $467,000, which has been provided for in the year ended May.
The company says that, together with other adjustments, it reflects its intention to clear the balance sheet of items that are not seen as core to its future, as foreshadowed in the half-year report to shareholders.
Chief executive, Alan Clarke, says the sale is the first of a series of announcements the company anticipates making over the next few months as it sells more non-core assets and concentrates on operations ownership rather than property development.
No comments yet
