Azure Healthcare (AZV) has announced it has received an “indicative, conditional, non-binding takeover proposal.” The share price increased to a high of $0.42, or 17%, shortly after opening this morning. The gain represents a 53% increase in the last two weeks since closing at $0.275 on April 14.
The company was placed in a trading halt last Wednesday, April 23, awaiting details of a “potential transaction”. The Azure board sought the halt to consider the proposal and provide for further discussions. Management has allowed the party to commence due diligence and the process is ongoing.
The company stated this morning “There is no certainty at the moment that a transaction will occur and as such the Azure board recommends that its shareholders take no action. At this stage, the company is not in a position to identify the party who submitted the proposal.”
Chief executive, Robert Grey, owns approximately 29% of the stock, and has a long history with the company after initially founding Azure (then Austco Communications) in 1986.
It was reported recently that software expert Nathan Buzza will be leaving to pursue another software start-up opportunity.
AZV was originally a Nurse Call system manufacturer, and has successfully transitioned to become a provider of clinical workflow software and healthcare solutions. After beginning in Australia the company has expanded overseas and is currently well placed in the high growth North American market.
With the current price at $0.39 the market capitalisation is approximately $75m.