Avingtrans PLC - Cambridgeshire-based provider of systems and services for energy, medical and industrial sectors - Says its two medical equipment businesses, Scientific Magnetics and Tecmag will merge with Australian medical technology and engineering company Magnetica Pty Ltd. Following completion - which is subject to a shareholder vote at a general meeting on January 29 - Avingtrans will become the majority shareholder in the combined business with an initial interest of 58.4%, rising to 59% after the payment of AUD600,000, about GBP340,412. Avingtrans currently holds an 82% stake in Scientific Magnetics
Following completion, Avingtrans will invest up to GBP3.2 million for new shares in Magnetica to fund new MRI product development and commercialisation activities. This could increase its stake to 61%.
"We believe this merger offers real potential to accelerate the planned move up the value chain in what is a highly specialised and integrated, international medical-imaging market. By combining the expertise of Magnetica, Scientific Magnetics and Tecmag in a single entity, there is an exciting opportunity to become a leading MRI systems integrator for a variety of niche markets, as well as the prospect of increasing accessibility to high quality medical imaging around the world," says Avingtrans Chief Executive Steve McQuillan.
Current stock price: 282.00 pence
Year-to-date change: down 0.4%
By Ife Taiwo; ifetaiwo@alliancenews.com
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Avingtrans (AVG)