Capitol Health Shares Skyrocket 20% as Integral Diagnostics Acquisition Proposal Enters the Picture

Shares of Capitol Health Ltd have surged by 20% as Integral Diagnostics Ltd’s acquisition proposal comes to light in the market today. The ASX All Ords listed company witnessed a notable uptick, trading at 29.5 cents in the early hours.

Capitol Health and Integral Diagnostics have officially entered a process and exclusivity deed, signaling Integral Diagnostics’ aim to acquire 100% of Capitol Health through a scheme of arrangement. This strategic move has garnered significant attention from investors, propelling Capitol Health’s stock price.

According to Capitol Health’s chair, Andrew Demetriou, the proposed offer from Integral Diagnostics reflects appealing value for Capitol shareholders, making it a favorable decision for the board to engage in further discussions with Integral.

Integral Diagnostics’ proposal suggests an exchange ratio of 0.12849 Integral Diagnostics shares for every Capitol Health share, translating to an offer of 32.6 cents per share – presenting a generous 33% premium based on recent market close prices.

Capitol Health has disclosed that each of its directors is inclined to recommend shareholders to approve the proposed transaction, subject to specific conditions including the signing of an implementation deed, the absence of a superior proposal, and a positive outcome from the upcoming independent expert’s report.

Capitol Health revealed that this indicative proposal from Integral Diagnostics was preceded by an earlier unsolicited approach in March, leading to detailed due diligence processes and negotiations. The progression to the current offer indicates a surety of mutually beneficial outcomes for both parties involved.

The Managing Director of Capitol Health, Justin Walter, expressed enthusiasm about the potential merger, considering it as a transformative opportunity for the company’s staff and shareholders alike. The merger with Integral Diagnostics is anticipated to generate considerable value through increased scale, enhanced internal capabilities, and organic growth, establishing a strong market presence in the imaging segment.