By Taofik Salako, Capital Market Editor
A healthcare investment firm, Cedar Advisory Partners Limited, has launched a N492.75 million bid to acquire all equities stakes held by minority shareholders in Union Diagnostic and Clinical Services Plc.
Cedar, which holds 20.04 per cent equity stake Union Diagnostic, is offering to acquire the entire 39.62 per cent equity stake held by sundry minority retail shareholders. Cedar seeks to increase its shareholdings to 59.66 per cent after the transaction, making it the single largest shareholder in the company.
The board of Union Diagnostic confirmed that it had received a binding offer from Cedar, seeking to acquire a total of 1.408 billion ordinary shares of 50 kobo each held by all minority shareholders at an offer price of 35 kobo.
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Cedar currently holds 711.92 million ordinary shares of 50 kobo each. The transaction is being proposed through a scheme of arrangement.
The offer price of 35 kobo per share represents a premium of 75 per cent on the company’s last closing price on March 16, 2020 and 70.1 per cent on 90-day volume weighted average share price.
Directors of Union Diagnostic said they had fully considered the offer and will recommend the offer to shareholders for consideration at a court ordered meeting, subject to the approval by relevant regulatory authorities.
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