NZ shares rise as Metlifecare jumps on new takeover bid

The S&P/NZX 50 Index advanced 97.51 points, or 0.8 percent, to 11,656.21. Within the index, 34 stocks rose, 8 fell, and eight were unchanged. Turnover was $111 million.

Metlifecare led the benchmark higher, jumping 10.3 percent to $5.76 after Swedish investor EQT made a new takeover bid at $6.00, a dollar less than the original offer but $1.78 more than Friday’s closing price of $5.22.

EQT's Asia Pacific Village Group was trying to back out of the deal and faced protracted litigation if Metlifecare shareholders voted to proceed with a claim at a special meeting this week. That's now been deferred, and Metlifecare's board will resume talks with EQT after receiving a new offer yesterday. Chair Kim Ellis said its largest single shareholder, the New Zealand Superannuation Fund at 19.9 percent, was supportive of the new offer.

“The fact that EQT has come back to the table suggests there is some recognition that the sector remains attractive in terms of longer-term growth,” said Shane Solly, a portfolio manager at Harbour Asset Management.