Calan enters option agreement

The agreement gives Abano Healthcare Group Limited the right to acquire the trust's interest in Ascot Radiology in April 2007 for a price determined by reference to an earnout formula. The earnout formula is linked to the practices profitability.

The sale price (depending on actual profitability achieved) could range from $500,000 to in excess of $1 million. Should the profitability not achieve a pre-agreed level either party has the right to terminate the option agreement. Based on Ascot Radiology's current management forecast for the year to 31 March 2007, the sale price for the Trust would be $1 million.

The current book value of this investment is $100,000.

Calan chief executive Miles Wentworth said "The entering into this option agreement could provide us with a premium price and a significant gain on sale for the Trust. In addition to these benefits, this is in line with our stated strategy of exiting non-revenue producing assets".

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.