Two ASX-listed regional radiology chains have agreed to merge in a $857 million deal they say could transform the Australian and New Zealand diagnostic imaging industry.
Integral Diagnostics and Capitol Health said on Monday they had entered into exclusive talks after Integral lobbed an unsolicited all-scrip offer for its smaller peer, with Capitol's board intending to recommend that shareholders approve the deal.
The merger would create a new company owned by 63 per cent of current Integral shareholders and 37 per cent by Capitol shareholders, a combination that represents a 33 per cent premium to Capitol's share price from Friday's close.
