Dipo Olowookere
By Dipo Olowookere
An investment company with special interest in the health business landscape, Cedar Advisory Partners Limited, is proposing to acquire the minority shares of a company listed on the Nigerian Stock Exchange (NSE), Union Diagnostic and Clinical Services Plc.
A statement issued by the firm on Thursday disclosed that Cedar has made an offer to the board and it intends to pay 35 kobo for each of the stocks held by the shareholders number 1,407,855,051 units.
It was stated that the total number of equities held by minority investors of the firm represents 39.62 percent equity stake of the company and the deal would be done through a scheme of arrangement.
In the disclosure released by Union Diagnostic today, it was explained that the amount being proposed by Cedar for the purchase of each of the stock represents a premium of 75 percent of the company’s last closing price on March 16, 2020 and 70.1 percent of 90-day volume weighted average share price.
In view of this, the board of Union Diagnostic said it has considered the binding offer from Cedar for the purchase of all the minority shares of the company.
“The board announces that it has fully considered the offer and will recommend the offer to shareholders for consideration at a court ordered meeting, further to the approval by relevant regulatory authorities,” the notice said.
Concluding, the company said further details concerning the transaction would be communicated to its shareholders, advising them and potential investors “to exercise caution when dealing in shares until a further announcement is made.”
As earlier stated, Cedar is an investment firm and has over the years carved a niche in the healthcare business landscape, working with major industry players across various levels of the healthcare value-chain.
It currently holds 711,916,612 ordinary shares representing 20.04 percent equity holding in the Union Diagnostic. Subsequent upon the conclusion of the transaction, Cedar will hold a combined 59.66 percent equity holding of the company.
