InDaily

Adelaide's independent news

Support

Hills shares sink after merger delay

Business

Hills Limited shares have slumped more than 20 per cent after the company said it will delay the proposed merger of its health technology arm Hills Health Solutions with international healthcare technology leader, Lincor Solutions to form Lincor Limited.

Comments
Comments Print article

Hills says market volatility has prompted it to postpone the planned Lincor IPO to raise the necessary capital until 2017, along with the demerger of Hills’ shares in Lincor to its eligible shareholders.

“Hills and Lincor Solutions Inc shareholders, however, remain committed to the merger given the significant synergies available to the combined business,” Hills said in a statement today.

The proposed merger was announced in September, to an enthusiastic response from the market.

Lincor’s health technology is being installed at the new Royal Adelaide Hospital.

The announcement comes just over a week after the Hills annual general meeting during which chairman Jennifer Hill-Ling and CEO David Lenz gave no indication of the impending delay.

Lenz told the AGM that “the strategic relationship with Lincor continued to drive new business opportunities for Hills in FY16 with the New Royal Adelaide Hospital being a significant win for the relationship”.

“As outlined by Jennifer, Hills announced that subject to shareholder approval, the Hills Health Solutions (“HHS”) business will be merged with Lincor Inc. (“Lincor Solutions”) to form a newly incorporated company, Lincor Limited, which will be listed on the ASX,” he said.

Last week InDaily reported that Hills had sacked most of its Adelaide accounts workforce, with 18 jobs to be sent offshore to India.

– with AAP

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron

Comments

Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article