indicative, conditional, non-binding proposal , page-8

from proactive investors

Azure Healthcare (ASX: AZV) should trade higher after receiving an indicative, conditional and non-binding proposal to acquire all of the issued capital of Azure, pursuant to either a scheme of arrangement or off market takeover.

Part of the proposal requires that it be unanimously recommended by the Azure Board.

Azure last week sought a trading halt to consider the proposal and has allowed the party to commence due diligence, however is not yet in a position to identify the other party.

As the discussions are preliminary, it is not possible to form a view as to the certainty of the proposal or the prospects of any transaction being finalised.

In February, Azure was granted UL1069 Certification for its IP Based Nurse Call System, offering an opportunity to expand sales in the U.S. which represents a US$275 million market, and growing at 20% annually.

It also opened a new US manufacturing facility in Irving, Texas, to support the increasing demand.

Azure reported a 41.9% increase in revenue for the year ended 31 December 2013 to $16 million, while net profit increased by 238.8% to $2.17 million.

Shares in the company have risen 9-fold in the last 12 months, trading as high as $0.42 today. AZV last traded at $0.395 and is now valued at almost $70 million.



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