Wednesday 29 November 2017 by William Arnold Company updates

Capitol Health announces takeover of Integral Diagnostics

Capitol Health has announced a takeover of Integral Diagnostics Ltd

Capitol Health (Capitol) has announced a takeover of Integral Diagnostics Ltd (ASX: IDX). Bridging finance has been approved and Capitol has re-confirmed its intention to refinance all debt post completion (including the 8.25% May 2020 bond).

Main points:

  • Capitol Health has announced an off market takeover offer for Integral Diagnostics
  • The offer equates to a total $52.2m of cash and  6.9 shares in Capitol for each Integral share
  • Capitol has already accumulated 19.55% in pre bid acceptance agreements from a number of institutional IDX holders
  • MergeCo is estimated to have underlying pro forma FY18 EBITDA of $64m; pro forma FY18 net debt of $70m (1.09x leverage) that is conservative which supports its refinance position
  • New funding arrangements in place consisting of a bridging facility of $100m, supplementing Capitol’s existing $35m. Capitol’s unsecured notes will remain in place and following completion of the transaction “Capitol intends to refinance MergeCo’s debt”

The ASX release can be found here.

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