Capitol Health has previously commented on its intention to sell its NSW assets for $81.5m utilizing funds for, amongst other things, the planned redemption of its unsecured Notes in May 2018.
Capitol advise that the sale has now been approved by the Foreign Investment Review Board.
This therefore clears one hurdle for the planned notes redemption in May 2018 (@ $103) - subject to its ability to obtain any necessary alternative funding.
“As announced to the market on 14 June 2017, Capitol Health Limited (Capitol or the Company) (ASX: CAJ) has agreed to sell its NSW radiology assets to I-MED Radiology Network (I-MED) for a total consideration of $81.5m (less $1.2m cash adjustment for employee entitlements).
The transaction was subject to Foreign Investment Review Board (FIRB) approval, which Capitol is pleased to confirm has now been received. Final completion of the transaction remains subject to customary third party consents.
The transaction is progressing as anticipated and the parties continue to expect the transaction is likely to complete on or around 31 August 2017.”
The ASX announcement is available here