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December 11, 2007 |
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SYMBION HEALTH: Sees 10% EBIT Growth by the End of FY2007 Symbion Health Ltd. expects at least 10% earnings growth by the end of the current year, in line with market forecasts, on a strong performance in pharmacies and growth in pathology, Sonali Paul writes for Reuters. According to the report, Symbion's chairman, Paul Mcclintock, during the company's annual meeting, highlighted the growth outlook while urging shareholders to reject Primary Health Care Ltd.'s AU$2.7 billion takeover offer. The company's outlook for the 10% EBIT growth is in line with analysts' forecasts for earnings of around AU$222.6 billion for the year ended June 2008, relates Reuters. Chief Executive Robert Cooke is quoted as saying, "Our pharmacies business is just sensational, consumer's real strong, and pathology's showing really encouraging signs of gathering some momentum as well." Mr. McClintock, through a filing with the Australian Stock Exchange says, "The Healthscope and IAC transaction would have realized significant value, as well as ongoing benefits for Symbion Health shareholders." Primary Makes Offer Unconditional Bruce Hextal of Thomson Financial writes that Primary declared its AU$2.65 billion cash offer unconditional if it gets at least 50.1% of acceptances on December 10. Ben Wilson of Reuters writes that by the Dec. 10 deadline, shares held under an acceptance facility, which allows institutions to withdraw their acceptances, had risen to 12.67%, up from 9.72%, giving Primary a total interest of 32.86%. However, the Sybmion board, states Thomson Financial, continues to reject Primary's offer saying that the diagnostics services businesses that Primary covets are far more valuable to Primary than its offer implies. Primary's chief executive officer, Edmund Bateman, said his company's all cash offer was at an attractive premium to the top end of the independent expert's valuation range for Symbion of AU$3.52-AU$3.91 per share, relates Thomson Financial. About Symbion Health Symbion Health Limited, headquartered in Melbourne, is a diversified Australian domestic health care business. Most of its earnings are derived from the provision of pathology and diagnostic imaging services. The company also manufactures and markets vitamin and mineral supplements (consumer nutriceuticals). In addition, it operates a wholesale medical products distribution network, focusing on the distribution of prescription drugs to pharmacies and hospitals. * * * On Jan. 30, 2007, Moody's Investors Service placed the Ba1issuer rating of Symbion Health Limited on review for possible downgrade after the company's announcement that it has received an ownership proposal from Primary Health Care Limited (unrated). |
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