ITL HEALTH GROUP LTD 
By
ITL Limited (ASX.ITD) is pleased to announce it has entered
into a conditional Sale Agreement for 100% of its shares in
ITL SEA Sdn Bhd and its wholly owned subsidiaries (including
its operating business, ITL Healthcare SEA Sdn Bhd). The
agreement is expected to be effective from 1 January 2012.
Headquartered in Kuala Lumpur, this business markets and
distributes medical equipment and consumables to Malaysian
hospitals and medical centres.
This decision reflects both the lack of strategic fit of this
distribution only business and the ongoing depressed market
conditions in Malaysia. Following an extensive evaluation of
strategic alternatives for this business, the Board of ITL
has determined that the proposed management buyout represents
the best outcome for shareholders in disposing of this loss
making business.
It should be noted that this business is unrelated to ITL's
highly successful manufacturing company ITL Asia Pacific Sdn
Bhd which is based at Ipoh
in Malaysia and produces biological safety sampling devices
primarily for the global blood and laboratory industries.
This Sale Agreement is conditional on certain conditions
precedent being met, but the Board expects that the
transaction will be concluded by May
2012.
Proceeds from the sale are anticipated to be approximately
$1.0 million and it is expected that the accounting treatment
for this transaction will show a once off loss of
approximately $1.0 million (including a $0.6 million
reclassification of prior year foreign currency translation
losses from
equity to P&L).
Despite the lower consolidated Group revenue post divestment,
the impact of the sale on second-half Group operating profit
(excluding the once off accounting loss) is expected to be
neutral to positive. On conclusion of this transaction, the
ITL Group expects to be debt free.
ITL also has some potential upside from the sale via an
earnout arrangement with the purchaser based on profit earned
for the 2012 calendar year.
Bill Mobbs
Executive Chairman
ITL is a diversified healthcare company, specialising in innovative medical devices, procedure packs and medical equipment for global healthcare markets. ITL manufactures in Australia and Malaysia, and has sales offices in Australia, North America, and Asia.
ITL's patented medical devices have a presence in over 35 countries and protect healthcare workers in millions of procedures annually. ITL supplies its range of customised medical procedure packs to over 200 hospitals across Australia, and within Asia supplies medical equipment and instruments to over
160 hospitals.
Australian Securities Exchange
Code: ITD
Ordinary Shares
122,090,463
Board of Directors
Bill Mobbs Executive Chairman Sanjay Sehgal Non-executive Director Julian Gosse Non-executive Director
Jennine McClure Company Secretary
David Holden Chief Financial Officer
ITL Contact
Bill Mobbs Executive Chairman
Phone: +61 3 8773 3050
Email: info@itl-limited.com
www.itl-limited.com
|
distributed by
| This press release was issued by ITL Limited and was initially posted at http://www.itl-limited.com/PDF/News/4 April 2012 - ASX Announcement - SEA Sale Final.pdf . It was distributed, unedited and unaltered, by noodls on 2012-04-04 08:55:20 AM. The issuer is solely responsible for the accuracy of the information contained therein. |
