CML HealthCare Income Fund of Mississauga, Ontario, is strongly interested in pursuing a transaction involving Medisys Health Group, a Canadian healthcare and diagnostic imaging services provider, which may include an acquisition of its securities and assets, a merger or other mutually beneficial transaction. CML HealthCare holds units of Medisys.
Earlier this month, Medisys received a written proposal from its significant unitholder, the Elman family, through which it would be taken private at a net price of $7 Canadian ($6.62, U.S.) per unit, in cash, according to the Montreal-based firm.
CML said it believes the offer price of $7 per unit by the Elman family does not fully reflect the value of Medisys and the underlying operating assets. The company stated that it believes it can structure a transaction whereby Medisys unitholders would receive superior value, at a premium to $7 that would provide either immediate liquidity or an opportunity to participate in the anticipated future growth of the combined entities.
No specific terms of a proposal were provided by CML.
Any transaction involving Medisys would be subject to completion of due diligence, definitive documentation and customary conditions and approvals, CML said.