Medisys acquisition heats up
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.
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.