(Alliance News) - Georgia Healthcare PLC said Wednesday it is in discussions concerning an all-share takeover offer made by majority shareholder Georgia Capital PLC.
Should a takeover offer be accepted, Georgia Healthcare shareholders would be entitled to one share in Georgia Capital for every 5.22 Georgia Healthcare shares held, the same exchange ratio offered in an exchange facility in November that was substantially oversubscribed.
Georgia Capital currently holds a 71% stake in Georgia Healthcare.
Shares in Georgia Healthcare were down 6.8% at 91.80 pence on Wednesday in London, while Georgia Capital shares were 10% lower at 440.00 pence.
A pre-condition for the offer is that the directors of Georgia Healthcare unanimously recommend the offer should proceed - having already indicated they intend to do so.
"The independent directors consider to be undervalued by the market, but recognise the substantial shareholder participation in the recent exchange facility; Georgia Healthcare's limited free float and share liquidity, and the nature of the all-share possible offer which would allow existing shareholders of Georgia Healthcare to continue benefiting from exposure to Georgian healthcare, as Georgia Capital shareholders," Georgia Healthcare said.
Georgia Capital now has until 1700 BST on June 16 to make a firm offer for Georgia Healthcare.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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