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EQT could offload I-Med: The Australian
Posted on Friday, 17 March 2017 14:34
Private equity investor EQT may opt to offload Australian medical imaging clinic network operator I-Med, according to the Australian.
The paper said market sources have suggested the firm could go on the block.
However, it noted that some have questioned the logic of putting it up for sale at this time, when competitor Integral’s share price is down significantly compared with the levels it was trading at following its initial public offering in October 2015.
The Australian referenced the potential divestment as it reported on the planned sale of Brisbane-headquartered cancer hospitals operator Icon Group, noting that Archer Capital is the latest suitor to have been named as a prospective bidder for the business.
I-Med was linked with an acquisition of its own as recently as October 2016, when the Australian Financial Review reported that shareholders of Q-scan Services were on the lookout for a buyer; the paper named the company, as well as Sonic Healthcare and Primary Health Care, as possible acquirors.
EQT bought the business as head of a consortium which also included GIC and Caisse de Dépôt et Placement du Québec back in April 2014.
At the time the private equity firm said the move would enable it to continue growing in Australia.
I-Med previously planned to go public; in January 2014 Business Spectator cited chief executive Steven Rubic as saying the firm’s then-owners, including Anchorage Capital, Fortress Investment and Och-Ziff Capital Management could look to exit, either via a sale or flotation.
A subsequent report by the Australian said the group may opt to raise as much as AUD 600.00 million by listing.
However, it was not to be and in October 2015 Reuters cited a person in the know as saying the plans had been called off due to market volatility.
I-Med employs around 3,000 people, including 250 radiologists, who perform over 3.70 million patient procedures.
The company’s network includes locations in Sydney, Melbourne, Canberra and Adelaide, among others.
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