Sydney, June 27, 2007 AEST (ABN Newswire) - IBA Health Limited (ASX: IBA) - Australia's largest listed eHealth company, today announced it has completed the acquisition of 51% of the joint venture company, that is established in Malaysia from its partner Sharikat Permodalan Kebangsaan Berhad ("SPK") for a consideration of $26.5 million making it a wholly owned subsidiary of IBA.
Under the arrangement IBA will acquire the ongoing health IT business of SPK's subsidiary Solutions Protocol. Solutions Protocol will continue to remain responsible for the delivery of its current contract with the Malaysian Ministry of Works on behalf of the Malaysian Ministry of Heath.
The acquisition of the remaining equity in the Joint Venture and the ongoing Health IT business will provide an annualised contribution to earnings of over $5 million and strengthens IBA's commitment to SE Asia by bringing around 170 experienced personnel and local intellectual property regarding integration with IBA's software installations in Malaysia. The acquisition will ensure that IBA is able to directly service the ongoing requirements of its growing customer and prospect base across South East Asia.
Gary Cohen, Executive Chairman of IBA Health said, "This acquisition builds on IBA's established presence in Malaysia, where the company has already based its regional headquarters. It also makes us the largest health IT provider in Malaysia.
"Whilst the SPK Group will remain an IBA partner and continue to operate as our non exclusive distributor in Malaysia, particularly in the public sector, under the revised arrangements, IBA will have more direct control over service delivery for existing clients, receive increased maintenance revenues whilst enabling IBA to service new contracts more effectively through an enlarged and more integrated team. It will also open up the opportunity for IBA to work with other partners in the region," concluded Gary Cohen
Steve Garrington, Chief Executive of IBA Health said, "IBA is pursuing a number of new sales opportunities in South East Asia and the strengthening of our local presence will be an important factor in winning core business that we will then be able to deliver more effectively. The experienced personnel we acquire with the acquisition will be integrated into IBA's existing facilities in Kuala Lumpur.
"Our initial investment in Malaysia has been one of the great successes of our Asian expansion strategy and we are delighted that we have been able to secure this deal to ensure the next steps in the region are equally successful".
End of Release
For more information on IBA Health, please visit the Company's website at www.ibahealth.com.
Notice of Dealing Disclosure Requirements Under The UK City Code on Takeovers and Mergers
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of IBA Health Limited or of iSOFT Group plc, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of IBA Health Limited or iSOFT Group plc, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of IBA Health Limited, or of iSOFT Group plc by IBA Health Limited or iSOFT Group plc, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.
Attention is also drawn to the announcement made by IBA on 23 May 2007 explaining the application of Rule 8.3 to persons who take up or deal in entitlements under the Rights Issue or who underwrite the Rights Issue.
Contact
Gary Cohen
Chairman
IBA Health Limited
Phone: +61 2 8251 6700
Email: gary.cohen@ibahealth.com
Media
Greg King
Communications and Business Development Director
IBA Health Limited
Phone: +61 413 621 111
Email: greg.king@ibahealth.com
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