PGC paragon care limited

Ann: Paragon Care and Quantum Merger - Investor Presentation, page-9

  1. 182 Posts.
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    I'd have to say that I did not walk away from the presentation that excited about the merger.
    So the key rationale for the merger was to expand the geographic footprint and and get exposure to medical imaging.
    Few synergies other than revenue synergies (leverage the greater geographic footprint and their relationships with Original Equipment Manufacturers (OEM) to increase cross sell). Neither CEO will run the merged business, they will remain with their current companies and a new CEO will be appointed to run the merged entity with the key objective to drive cross selling of OEM products.
    Now they stated that they have been working on the merger for 3 months and yet the Chairman couldn't give much detail on these cross selling opportunities. Puzzling!
    Now you would have thought that they would have had discussions with the OEMs to ascertain whether this cross selling opportunity exists. Do these OEMs have existing relationships in these countries that would deny the merged company the ability to distribute the products in these countries? It maybe that discussions have taken place but the merged company is not in a position to disclose.
    Bottom line, lacked a lot of detail.
    My humble analysis is that a PGC shareholder is no better or worse off, the eps of the merged company on my calculations is about the same as i had calculated for PGC as a stand alone business, the deal is not eps accretive.
    Yes the company is bigger, but that doesn't make it better. More detail please!!!
 
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