The New Zealand Superannuation Fund confirmed today that it had conditionally agreed to purchase 17% of listed retirement village and aged care provider Metlifecare (NZX: MET) (ASX: MEQ). The commitment is in the form of a conditional fixed price sub-underwriting agreement and will, if completed, take the Fund’s total holding in the company to 19.9%.

The Fund has committed to pay $126m ($3.53 per share) for the 17% stake. The deal is expected to settle on 28 November 2013.

GM Finance Stewart Brooks said the retirement village industry enjoyed favourable demographics and was a good fit with the Fund’s long-term investing horizon and growth profile.

“We believe Metlifecare offers value at $3.53 per share, and look forward to engaging with the company to encourage and facilitate strategies that will add further value over the longer term.”

This addition to the Fund’s holding in Metlifecare would be managed by the Fund’s in-house team of investment managers.

ENDS

About the NZ Super Fund:
The New Zealand Superannuation Fund invests globally in order to help pre-fund New Zealanders’ universal superannuation entitlements. The Fund is managed by a Crown entity, the Guardians of New Zealand Superannuation.

Media contact:
Catherine Etheredge, 0274 777 501, cetheredge@nzsuperfund.co.nz