The ACCC announced it would approve the sale of HT&E’s Adshel business to Ooh!Media. The market reacted positively to the announcement (share price +12.4% on the day of the announcement).
Primary Health Care announced a $250m capital raising to fund expansion. The expansion undertakings are:
1. ~$140m to increase operational capacity in existing Medical Centres over the coming 3 years (including increasing FTE GPs from 945 to ~1,400),
2. ~$100m to upgrade the pathology IT platform, to deliver efficiency and support growth over the coming 5 years, and
3. Up to $140m to acquire a day hospital provider. We view it as a considered plan developed by the MD over the period since he became MD in Sep-17.
The raising will support growth in the company’s medical centre business – where we see significant opportunity to leverage the company’s assets and the growing demand for primary / GP care. It will provide the company with the capacity to expand its GP centre model and realise the earnings' potential of this division in a smart way.
We will participate in the raising on your behalf.
Net debt/EBITDA will go from 2.8x pre the offer, to 1.9x post (proforma 30-Jun-18). Thus, the company will have the capacity to implement the initiatives detailed above over the coming 3 to 5 years.
Moreton Resources announced positive coal quality results for its South Burnett project – testing has indicated low sulphur and impurities, and high calorific (energy) values. This data will contribute to the development of the Feasibility Study being progressed by Moreton.