Healthscope and Symbion Modify Deal
The planned merger between Symbion and Healthscope hit a bump last month when Symbion shareholders voted to defeat the $2.86 billion proposal. The news was detailed in an article published by the Sydney Morning Herald. In light of such, the two companies crafted a new proposal in hopes of winning over the shareholders who were holding out in the close margin vote.
The new proposal calls for acquisition of the diagnostics businesses of Symbion, including the diagnostic imaging, pathology, and medical center businesses by Healthscope. The monetary arrangements will provide Symbion shareholders between $2.646 and $2.516 billion for those diagnostics businesses. This deal will financed with the issuance of Healthscope business shares. Healthscope will also assume the current Symbion debt.
Ironbridge Capital and Archer Capital (IAC) will purchase the consumer businesses and pharmacy services through a scheme of arrangement.
Part of the difficulty in closing the initial deal was Primary Health Care, who owns 20 percent of the Symbion shares. Those shares were part of the votes against the initial deal. The modified deal is intended to gain enough shareholder support to mitigate any of the votes that Primary Health Care may cast against the deal.
October 10, 2007 Related topics: Mergers & Acquisitions, Corporate Financials