MDY Healthcare - Re: Acquisition of Cozart
RNS Number:3420D
MDY Healthcare PLC
05 September 2007
MDY Healthcare plc
Proposed acquisition of Cozart plc by Concateno plc
5th September 2007 - MDY Healthcare plc, the strategic investor in healthcare
companies, today announces that one of its strategic portfolio companies, Cozart
plc ('Cozart'), the medical diagnostics company, has announced this morning that
it has reached agreement on the terms of a recommended cash offer for Cozart by
Concateno plc ('Concateno'). The offer is being made at 57.5 pence in cash for
each Cozart share and values the existing issued ordinary share capital of
Cozart at approximately £64.4 million.
MDY Healthcare has been a shareholder in Cozart since July 2006 when it
subscribed for 1.2 million ordinary shares at 28p. In March 2007, MDY
Healthcare subscribed for further shares in a vendor placing and has acquired
further shares in the market taking its total interest in Cozart to just over 2%
of the issued share capital. Assuming the Concateno offer becomes wholly
unconditional, MDY Healthcare would have realised a profit of just over £600,000
representing a return of just over 87% on its investment.
MDY Healthcare has today given an irrevocable undertaking to accept the
Concateno offer along with other Cozart shareholders representing in aggregate
approximately 52% of the existing issued share capital of Cozart.
Commenting on the acquisition, Charles Spicer, CEO, said:
'This deal, when it completes, will represent our first cash exit of a strategic
investment and is therefore an important validation of our business model. The
level of return illustrates the potential for profit in the healthcare sector
within relatively short time frames.'
-ends-
For further information, please contact:
MDY Healthcare plc
Charles Spicer, CEO +44 (0) 207 647 1800
charles.spicer@mdyhealthcare.com
Financial Dynamics
Ben Atwell +44 (0) 207 831 3113
ben.atwell@fd.com
John Gilbert
John.gilbert@fd.com
Notes for editors:
About MDY Healthcare
MDY Healthcare plc is a sector specialised strategic investing company quoted on
AIM (ticker symbol: MDY). MDY Healthcare seeks to achieve superior returns for
shareholders by investing globally in companies, both public and private, across
the healthcare sector. The directors, executives and senior advisors have
significant operational and investment experience in the sector and therefore
the ability to identify and review a wide range of potential investments.
Further information can be found on the website www.mdyhealthcare.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEAANSEFAXEFE