Cedar Advisory Partners becomes largest shareholder in Union Diagnostics

Cedar Advisory Partners, an investment company that specialises in the healthcare ecosystem has become the largest shareholder as Union Diagnostics Plc delists from the Nigerian Exchange Limited (NGX).

The Nigerian Exchange had officially delisted Union Diagnostic and Clinical Services Plc from its mainboard following the conclusion of its scheme of arrangement. The medical diagnostics firm earlier in September 2021, notified the Exchange of its decision to delist from the Exchange’s board.

The transaction involved the transfer of 1,407,885,051 units of shares to Cedar in consideration for cash payment of 35 kobo per share to the scheme shareholders, taking the total cash consideration to N492,759,767.85. Upon the conclusion of the transaction, the company has been delisted from the Exchange.

According to the Scheme of arrangement published in January 2021 by the company: “A total of 1,407,855,051 units of shares held by the scheme shareholders were to be acquired by Cedar Advisory Partners Limited (“Cedar”), an existing shareholder with a total of 20.04 per cent shareholdings.

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“The decision to delist from the Exchange by the company was motivated by certain challenges around the inability to raise capital to fund expansions, the challenging operating environment and strong headwinds specifically relating to poor health-seeking behavior of Nigerians, gross underfunding of the healthcare sector and depreciating exchange rates that affect importation of consumables.

“Following the delisting, the post-scheme shareholding structure entails, Cedar Advisory Partners Limited, Lifecare Partners Limited, Akinniyi Ambrose Olusola, Akinniyi Elizabeth Abimbola emerge as the shareholders of the company with a respective shareholding of 2,119,771,663; 1,038,000,000; 233,462,131; 161,904,734, reaching a total of 3,553,138,528 units of shares.

The disclosure further read: “Cedar specializes majorly in the health care ecosystem with a focus on growth capital investing and value creation through operating turnaround. Cedar Advisory Partners Limited holds 59.66 percent shareholdings in the company following the acquisition. Lifecare Partners Limited is an accredited HMO in Nigeria, holding 29.21 percent shareholding in Union Diagnostics Plc. Akinniyi Olusola, a Director of Union Diagnostics Plc, currently owns 98.50 per cent of equity interest in Lifecare Partners Limited”.

“The shareholders unanimously approved the delisting of the Company’s shares at the last Annual General Meeting and Court Ordered Meeting held on the 25th of January, 2021. The Company has obtained all relevant regulatory approvals from Securities Exchange Commission (SEC), the Nigerian Exchange Limited, Federal High Court, Federal Competition and Consumer Protection Commission (FCCCP)”. The company said.