- Healthcare stocks Paragon Care (PGC) and Quantum Health Group (QTM) have announced they will merge to create a single medical supplies business
- Under the scheme of arrangement deed, Paragon will acquire 100 per cent of Quantum shares, with 0.243 PGC securities to be exchanged for one QTM share
- Paragon will remain listed on the ASX post-merger and own a majority 56.17 per cent of the business, while Quantum will own 43.83 per cent of the merged entity
- Together the companies believe the merged entity would generate $291 million in revenue by supplying medical equipment, devices, and consumables across Asia Pacific
- Paragon shares are up 1.64 per cent at 31 cents each, while Quantum securities are up 1.33 per cent to trade at 7.6 cents each
Healthcare stocks Paragon Care (PGC) and Quantum Health Group (QTM) have announced they will merge to create a single medical supplies business.
Paragon and Quantum announced on Monday they had signed a scheme of arrangement deed which will see Paragon acquire the fellow ASX-lister.
Specifically, Paragon is offering to acquire 100 per cent of Quantum shares in exchange for the issue of 0.243 of its own securities for every one QTM share on issue.
Paragon Care will remain listed on the ASX post-merger and own a majority 56.17 per cent of the business, while Quantum will own 43.83 per cent of the merged entity.
The Quantum Board unanimously recommends its shareholders vote in favour of the merger, with both companies arguing a merged entity would have greater reach across the Asia Pacific.
Additionally, the parties believe the merged entity would generate $291 million in revenue and Paragon Care Chair Shane Tanner said he was excited to merge with QTM.
“We are very pleased to announce that Paragon Care will be joining forces with Quantum,” Mr Tanner said.
“Our highly complementary distribution networks of suppliers and customers will ensure that the merged entity is well positioned to scale into the high growth Asian markets in the years ahead.”
Quantum Chair Drew Townsend echoed Mr Tanner’s comments.
“Over the past few years, we have built a leading healthcare distribution business in Asia, and we are confident that the merged entity will be attractive to existing and new suppliers who are looking to access the Asia Pacific market in the next decade,” he said.
Paragon Care shares were up 1.64 per cent at 31 cents at 2:34 pm AEDT, while Quantum Health Group’s securities were up 1.33 per cent to trade at 7.6 cents each.