Acquisition talks back on; CML offers $48 million for Medisys

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Despite an announcement on Monday that acquisition talks had ended, CML HealthCare Income Fund reported that it is now offering $9 ($9.03, U.S.) per unit, or a total of $48 million ($48.2 million), for Medisys Health Group Income Fund.

CML said Thursday its bid represents a premium of 42.4 percent over the $6.32 ($6.34) closing price of Medisys units on the Toronto Stock Exchange.

The Elman family, the biggest stockholder at Medisys, had proposed to take Medisys private at $7 ($7.03) a unit. The CML offer is also 28.6 percent higher than the Elman family bid, but the family currently controls 35 percent of the trust's outstanding units and manages the Montreal-based Medisys.

“The tender condition of the Elman family holdings is required as a result of Medisys' current structure, which provides that as long as the Elman family holds at least 15 percent of the Medisys Holding LP, the Elman family will retain control of Medisys and its operating entities indefinitely," CML said in a release.

CML HealthCare Income Fund owns CML HealthCare, a provider of laboratory testing services in Ontario, Canada.