Headline: Consolidated (NASDAQ:CHCA) revises asset sale agreement
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FRANKLIN, Mass, Sept 30 (Reuter) - Consolidated Health Care
Associates Inc said Tuesday it had signed a revised agreement
to sell assets to Olympus Healthcare Group Inc.
Under the terms of the new non-binding letter of intent,
Consolidated said Olympus will buy all of the operating assets
and assume certain liabilities of subsidiaries PTS Rehab Inc
and Consolidated Rehabilitation Services Inc.
In exchange, Olympus will give 42,553 shares of common
stock and $1.4 million in cash, it said, adding that it
expected to close the deal in October.
The original terms of the deal signed last August had
Olympus buying substantially all of the operating assets and
assume certain liabilities of Consolidated. It was to pay about
$5 million, or 175,620 shares and $750,000 in cash.
Consolidated did not explain why the two companies changed
the terms of the agreement and its officials could not be
reached for comment.
Its stock closed unofficially at 7/16 on the Nasdaq on
Tuesday.
It said it will try to sell the remaining assets of the
company, out-patient facilities in Delaware and Pennsylvania.
"Proceeds from the transactions, along with the collections
of the Company's receivables, will be used to reduce or satisfy
all or a substantial portion of the Company's outstanding
liabilities," it said.
Based in Olympus is a privately-owned, integrated post
acute health care services company.
Copyright 1997, Reuters News Service
Headline: CONSOLIDATED HEALTH CARE ASSOCIATES, INC. - Revised Proposed Sale
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FRANKLIN, Mass., Sept. 30 -- Consolidated Health Care
letter of intent with Olympus Healthcare Group, Inc., whereby Olympus will
acquire all of the operating assets and assume certain liabilities of PTS
Rehab, Inc. and Consolidated Rehabilitation Services, Inc., wholly owned
subsidiaries of Consolidated Health Care Associates, Inc., in exchange for
42,553 shares of common stock of Olympus and $1,400,000 cash. The transaction
is subject to completion of due diligence, signing of a definitive agreement
and approval of Consolidated shareholders and certain other customary
conditions. It is anticipated that the transaction will close after a
shareholders meeting in October.
Robert M. Whitty, President of Consolidated, stated "This revised
transaction with Olympus which constitutes the sale of the Company's
Massachusetts outpatient clinics along with the Company's Contract Service
business in Massachusetts and New York, is anticipated to be beneficial for
all of the clients and employees of the respective Consolidated subsidiaries."
The Company also announced that Consolidated will pursue the sale of the
remaining assets of the Company which consists primarily of out-patient
facilities located in Delaware and Pennsylvania. Proceeds from the
transactions, along with the collections of the Company's receivables, will be
used to reduce or satisfy all or a substantial portion of the Company's
outstanding liabilities.
Olympus Healthcare Group, Inc. is a privately owned, integrated post acute
health care services company, located in Westborough, Massachusetts. Olympus
provides a variety of post acute health care services in a number of sites
ranging from inpatient (hospitals, skilled nursing facilities) to ambulatory
(outpatient, day treatment center, home) throughout the New England region.
TEL: Robert M. Whitty, President & CEO of Consolidated Health Care Associat
es, 508-520-2422 |
