BGD Corporation is the latest Perth-based company to initiate a backdoor listing, announcing today that it intends to establish a primary healthcare business by purchasing assets held by Modern Medical Group.
BGD plans to sell its stake in the Euroa steel plant project in Gladstone and acquire an initial two clinics operated by Modern Medical in Melbourne for $4.5 million in cash and scrip, with the option to acquire a further four clinics for an undisclosed sum.
The company’s strategy is to establish a primary healthcare business in general practice and allied health.
In order to comply with ASX relisting rules, BGD will be required to undertake a capital raising, the size of which is yet to be finalised.
If the deal is successful, Modern Medical founder Todd Cameron will join the new company’s board.
The deal is subject to a number of conditions, including BGD retaining at least 60 per cent of doctors employed by Modern Medical.
BGD expects the deal to be completed in December.
BGD, formerly known as Boulder Steel, is led by non-executive chairman Shane Tanner, who is also the chairman of Vision Eye Institute.
Its board also includes non-executive directors Craig Higgins and Faldi Ismail.
Shares in BGD were 36.3 per cent higher to 1.5 cents at 10:20am.
