Brief: Paragon Care Says Merger Of Pgc And Ch2 Holdings

Paragon Care

01/03/2024 01:36

March 1 (Reuters) - Paragon Care Ltd  PGC.AX :
    * MERGER OF PGC AND CH2 HOLDINGS
    * MERGER ENABLES CO TO  FACILITATE EXPANSION INTO BOTH
EXISTING
COMPANIES’ HEALTHCARE WHOLESALING AND DISTRIBUTION NETWORKS
ACROSS AUSTRALIA, AMONG OTHERS
    * SIGNIFICANT SYNERGIES IDENTIFIED ACROSS BUSINESS PLATFORM
    * COMBINED ESTIMATED FY24 PRO-FORMA REVENUES OF A$3.3
BILLION AND
EBITDA OF A$93 MILLION FROM PROPOSED MERGER
    * ENTERED A SHARE SALE AGREEMENT TO ACQUIRE ALL OF ISSUED
SHARE
CAPITAL IN CH2 HOLDINGS PTY
    * CO AND CH2 IDENTIFIED SYNERGIES AND COST EFFICIENCIES OF
MORE
THAN A$5 MILLION P.A.
    * BOARD UNANIMOUSLY RECOMMENDS THAT PARAGONCARE SHAREHOLDERS
VOTE
IN FAVOUR OF THE RESOLUTIONS
    * UNDER PROPOSED MERGER PROPOSED ISSUE OF SHARES IMPLIES A
PURCHASE PRICE A$201.5 MILLION ASSUMING A A$0.214 SHARE ISSUE
PRICE
    * UNDER MERGER, PROPOSED THAT CO WILL ACQUIRE ALL OF ISSUED
SHARE
CAPITAL IN CH2 IN EXCHANGE FOR ISSUING 943.5 MILLION SHARES IN
CO


Further company coverage:  PGC.AX 

 ((Reuters.Briefs@thomsonreuters.com;))