Sydney, June 5, 2006 AEST (ABN Newswire) - IBA Health Limited (ASX: IBA) Australia's largest ASX listed eHealth company has raised A$28.3 million through a placement of 39.3 million ordinary shares at 72 cents each, strongly supported by international and Australian institutional investors.
The placement was made via a bookbuild among institutional and sophisticated investors in Australia and overseas at a 16% discount to the ASX closing price of 86 cents the day before trading was halted to conduct the placement.
Executive Chairman of IBA Health Gary Cohen said "We are very pleased with the strong support received from Australian and international institutions, which took up 85 per cent of the shares with significant private investors subscribing for the remainder. This capital raising will accelerate our ability to take advantage of core business opportunities and to fund our Asian growth strategy. In Asia we are particularly focused on the opportunity we have to deploy our integrated system at prices that deliver superior returns for the business."
In addition, as part of the placement Macquarie Bank Limited has agreed to sell approximately 18.1 million shares. Subject to settlement of the sale, Macquarie Bank has undertaken to IBA that it will not sell 12.3 million shares in IBA and will continue to own these after settlement of the sale for a period of 6 months.
Macquarie Bank has informed IBA that the pre-emptive rights of RJL Investments Pty Limited (RJL) (a company associated with IBA Chairman Gary Cohen) over the disposal of certain shares it holds in IBA Health do not apply to the shares to be sold as part of the placement.
As announced to the market on 9 May 2003, Macquarie Bank has an arrangement with RJL, pursuant to which RJL has assumed Macquarie Bank's downside risk on certain shares it holds in IBA in return for the payment to RJL of an agreed portion of any future profit realised on the shares. Macquarie Bank has advised IBA that the 12.3 million shares referred to above will continue to be subject to both this arrangement and the pre-emptive rights in favour of RJL.
The placement was managed by BBY Ltd and ABN AMRO Morgans Limited in Australia and internationally.
Source:
Michelle Spero
IBA Health
Contact
Gary Cohen
Executive Chairman
IBA Health Limited
TEL: +61 2 8251 6700
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