image

The best stocks to buy since 1993

Latest issue now available

SIGN UP NOW
Updates

Cbay Systems - Shares suspended pending reverse takeover

June 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CBAY
  • Price:
  • 71p
Chief executive Raman Kumar has put CBay firmly on the map by buying a controlling stake in the largest medical transcription company in the world. It has agreed to buy a 69.5% stake in Medquist from Philips Electronics for whom the business was non core. The total consideration is US$287 comprising US$98m cash, US$91m of convertible loan notes and US$98m in the form of a bridging loan. For 2007, MedQuist reported total revenues of US$340m, EBITDA of US$19.3m and also cash on the balance sheet of US$150m and on any of those asset tests the deal therefore constitutes a reverse takeover. To help fund the deal, CBay has just placed US$123m new shares with SAC Private Capital and Lehman Brothers at 70p, amounting to 57.8% of the enlar ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

CBay (August 2009)
CBay (December 2007)
CBay - Completes acquisition (September 2007)
CBay Systems - Indian BPO story (July 2007)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

LIMITED PERIOD OFFER

SUBSCRIBE TODAY AND SAVE £40 WITH OFFER CODE 40OFFSCSW

To access our archive of articles and to receive current issues you need to subscribe

SUBSCRIBE NOW