Business
Update
Update.
About this update from Ekf Diagnostics Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 8764Z EKF Diagnostics Holdings PLC 20 March 2017 \n\n \nThis announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).\n \nEKF Diagnostics Holdings plc\n(\"EKF\", the \"Company\")\n \nUpdate\n \nEKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care business, announces the following update for shareholders.\n \nThe Directors are currently evaluating plans under which they would split the Company into two separate companies based on the business divisions, namely Point of Care and Lab Diagnostics. Whilst both these business divisions are valuable in their own right, the Directors consider that separating the companies out represents a better route for shareholders and one under which they are more likely to achieve a fair reflection of the value of each separate business.\n \nHowever, based on tax advice received by the Company, it is the Directors' understanding that US federal income tax chargeable on any gain associated with the divestiture of the business could be significant. In order to mitigate these potentially adverse tax effects, the distribution needs to qualify as a 'tax-free spinoff'. There are numerous requirements in order to achieve this treatment, including that no acquisition of 50% or more of the shares in either the Company (i.e. the business that remains following the divestiture) or the newly separated company may take place within two years of the separation. Accordingly, the articles of association of the two separate companies would be amended so as to include a prohibition of the sale of 50% or more of the shares in the companies without the consent of their directors.\n \nThe implementation of the above proposal is envisaged to include a cancellation of the Company's shares from trading on AIM following which it is the Directors current intention to seek a listing of the shares of both companies on a market to be determined.\n \nThe Directors are sympathetic to individual investors' requirements and therefore in order to provide those shareholders that do not wish to wait for the completion of the restructuring and subsequent potential sale of the two businesses with an exit, the Company is evaluating the possibility of a share buyback offer to shareholders. This share buybac...