MLA 0.00% 8.5¢ medical australia limited

Ann: MLA & ICU MEDICAL INC SIGNS SCHEME IMPLEMENTATION AGREEMENT, page-24

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  1. 798 Posts.
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    Just a few further thoughts about the proposed agreement,

    - ICU would be acquiring MLA for $11.7m, they'd be acquiring around $1.7m in cash (assuming a continuation of sales/margin this quarter from the 1.547m end of Jun17). So would be essentially paying around $10m for the 'business'.

    Lang Walker (holds circa 20%) originally was involved in the appointment of MLA's Chairman Hancox (who previously worked closely with LW), so would assume that this ICU tie in would likely already have LW's endorsement.

    Management's endorsement with all their shares are as follows:
    (number of shares)
    - Ian Mitchell 1.386m
    - Michael Jones 340k
    - Michael Andrews 100k
    - Geoff Cumming 40k
    - Bruce Hancox 0
    - Paul Gleeson 0
    - Daryl Ellis 0

    This amounts to a fairly paltry A$153k or 1.3% of shares on issue. In my view, whilst this is an endorsement, the actual price offered by ICU largely doesn't impact management's pockets, With the real bonus for them being in senior positions in the newly established ICU Australian operations and corresponding fatter salaries.

    With that in mind, regardless of what the William Buck report shows, Myself (and related parties) will be voting against the proposal with our approx 1.6% of the vote. The Agreement/offer needs considerably more sweetening, and even if another suitor doesn't eventuate ICU need to add a further 5c-10c on this minimum to get me over the line.


    all IMO, DYOR etc...
 
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