20th Mar 2014 11:46
LONDON (Alliance News) - EKF Diagnostics Holdings PLC Thursday said it has entered into separate conditional agreements to buy US-based molecular diagnostics business Selah Genomics Inc for up to USD70.6 million and Swedish haemoglobin analysers DiaSpect Medical AB for up to GBP20.75 million.
In a statement, the company said it also raised GBP22.0 million in a placing at 35 pence a share. It will also look to raise GBP4.0 million through a share offer.
"These acquisitions provide us with a huge opportunity to establish ourselves as a leading global player in point-of-care haemoglobin testing and to consolidate our position in molecular diagnostics and personalised medicine, an area that we consider to be one of the most exciting areas in diagnostics," EKF Chief Executive Julian Baines said in a statement.
"My board colleagues and I believe that these acquisitions will deliver an enhanced return to our shareholders and we expect the transactions to be earnings enhancing, both individually and in aggregate, from year one," he added.
The company said it will pay USD35.6 million by issuing new shares as an initial consideration for Selah. It will also make a deferred payments of up to USD35.0 million. It will pay pay an initial GBP10.25 million in cash and GBP5.75 million in shares for DiaSpect, and a deferred cash payment of up to GBP4.75 million.
Canaccord Genuity handled the company's placing, which was done through a so-called accelerated book build, where little or no marketing is done. The placing shares, made up of 14.3 million firm placing shares and 48.6 million conditional placing shares, represent 23% of the company's current share issue.
The conditional sale needs to be approved by EKF shareholders, who will have a chance to vote on the share issue at a general meeting on April 11.
EKF Diagnostics shares were down 1.4% at 35.5 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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