Medisys Health Group Income Fund, one of Canada's largest national providers of healthcare services to companies and insurers, has received a formal offer by its significant holder, the Elman family, to take the company private.
The family has offered about $6.57 U.S. per unit, or $7 Canadian, for outstanding shares, or about $35.3 million U.S. ($37.6 million Canadian) in cash, for the company.
The Elman family and other cooperating shareholders own about 35% of company shares. The offer is 19.3% above average closing price of the past 20 days, according to the company.
"Given the significant changes in the income trust environment, the limited liquidity of the fund's units, and the increasing costs of being a public entity, we believe that the proposed transaction provides unitholders with the best opportunity to realize immediate value," said Sheldon Elman, chairman and chief executive officer of Medisys, in a news release.
Medisys' board of trustees has set up a special independent committee to consider the proposal and make recommendations to the board, as well as supervise the preparation of a formal valuation for the transaction as required by Canadian law. The sale is subject to board, shareholder and regulatory approvals.
The Montreal-based company provides preventive, diagnostic and consulting services to about 4,000 companies, and its insurance medical-services division supports underwriting activities of more than 60 Canadian and U.S. life and health insurance companies. It also has medical-imaging services in Ontario and Quebec. Medgate, a Medisys unit, is a developer of occupational health and safety software, with numerous Fortune 500 clients, as well as the Centers for Disease Control and Prevention, according to Medgate's Web site.