Business
Acquisition of Majority Stake in new Medtech JV
Acquisition of Majority Stake in new Medtech JV.
About this update from Avingtrans Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5144K\n Avingtrans PLC\n 05 January 2021\n \n \n \n 05 January 2021\n Avingtrans plc\n (\"Avingtrans\" or the \"Company\")\n \n Acquisition of Majority Stake in new Medtech Joint Venture\n \n Avingtrans plc, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, is pleased to announce that its two medical equipment businesses, Scientific Magnetics and Tecmag will merge with Magnetica. \n \n \n \n \n Magnetica Limited, an Australian medtech and engineering company, specialising in next-generation MRI technologies, plans to merge with Scientific Magnetics - a UK-based business that designs, manufactures, tests and installs bespoke superconducting magnet systems - and its US subsidiary Tecmag, which manufactures instrumentation for NMR, NQR and MRI markets (the \"Combination\" or \"Combined Business\"). Completion of the merger is conditional upon Magnetica's shareholder approval, at an upcoming General Meeting on 29th January 2021.\n \n \n \n \n \n Subject to completion, Avingtrans, which currently holds a majority interest in Scientific Magnetics (82.0%), will become the majority shareholder in the Combined Business (with an initial interest of 58.4%, rising to 59.0% after a further cash contribution of AUD$0.6m). The Combined Business will continue to be known as Magnetica and will form a key part of Avingtrans' Medical and Industrial Imaging division moving forward. Scientific Magnetics and Tecmag will become wholly owned subsidiaries of Magnetica Limited.\n \n \n \n \n \n As at 30 June 2020, Magnetica had net assets of AUD$ 1.8m (£1.0m) and made a loss before tax of AUD$ 714.1k (£396.7k) in the financial year to 30 June 2020. At 31 May 20201 Scientific Magnetics had net liabilities of £2.1m and made a loss before tax for the financial year of £657.4k. Following completion, on a pro-forma basis, the total net assets of the Combined Business are expected be approximately £5.3 million.\n \n \n \n \n \n \n \n As part of the Combination, existing minority shareholders in Scientific Magnetics will exchange part of their holding for shares in Avingtrans, amounting to approximately 40,260 new ordinary shares of 5 pence each. \n \n \n \n \n \n Subject to comp...