Shareholders of Union Diagnostics Set To Approve Buy-out of Minority Investors

Union Diagnostics Building

Shareholders of Union Diagnostics and Clinical Services Plc will on January 25, 2021, approve a bid by Cedar Advisory Partners Limited to buy the 39.62 per cent held by minority shareholders.

Cedar Advisory Partners had last March launched the N492.75 million buy-out bid expected to raise its stake to 59.66 per cent to make it the single largest shareholder of Union Diagnostics and Clinical Services Plc.

The shareholders are expected to approve this bid at a court-ordered meeting (COM) scheduled to hold in Lagos. And given past experiences, the buy-out of the minority shareholders would lead to eventual delisting of Union Diagnostics and Clinical Services Plc from the Nigerian Stock Exchange (NSE) almost 14 years after it was listed in May 2007.

The COM would be preceded by annual general meeting (AGM) of the shareholders where they would review its full-year performance for the period ended December 31, 2019.

According to the notice of the COM, shareholders of Union Diagnostics are expected to approve the Scheme of Arrangement dated Monday, December 7, 2020, while authorising the directors, “to consent to any modifications of the Scheme of Arrangement that the Federal High Court or any regulatory authority may deem fit to impose or approve.”

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