CORRECT: Telstra spends $20 million for 2% of Orion Health 13 Nov 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Budget provides $321m for RS&T activities News
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
CORRECT: Telstra spends $20 million for 2% of Orion Health in IPO bookbuild
(Corrects number of shares in second par)
By Suze Metherell
Nov. 13 (BusinessDesk) - Telstra Health, a unit of Australia's largest telecommunications business Telstra Corp, bought 2 percent of Orion Health Group in the healthcare management software developer's bookbuild last week in the lead up to its listing later this month.
The Melbourne-based telecommunications business spent $20 million buying 3.5 million shares at $5.70 a piece in last week's bookbuild, which valued the company at $915 million, Auckland-based Orion said in a statement.
Orion is selling 21.1 million new shares to raise $120 million in new capital, while chief executive and founder Ian McCrae will sell a further $5 million, or 880,000 shares, into the float. Existing shareholders are estimated to keep around 86.3 percent of Orion after the float, with McCrae holding around 50 percent.
Orion will use the new funds to double the existing 40 research and development teams to accelerate its existing solutions and to undertake blue sky research on its big data analytics and predictive modelling software. The money will also go to improve implementation and delivery capability, and provide additional financial liquidity.
"Telstra Health clearly understands the looming health data revolution driven by the huge expansion in health related data generated by mobile devices and applications," McCrae said. "This is an exciting time for both businesses, and in addition to their investment, we look forward to working together on eHealth initiatives for the Asia Pacific region.”
Telstra launched its health unit in 2013, before separating it out as a standalone business this October. The push into Australia's A$120 billion health sector is part of the company's plan to widen its offerings beyond its bread-and-butter telecommunications and generate new income.
The Telstra business links patients with medical records, doctors and health services and use its network to transfer data and provide tele or video conferencing, particularly to the elderly or those in remote area.
“To create a truly connected health care system means working with providers, government and funders as well as some of the world’s best and most innovative solutions," said Telstra Health Managing Director, Shane Solomon. "Orion Health is a world leader in this sector and we are excited to work with them."
Orion didn't provide earnings forecast in its prospectus because of the "lumpy" nature of the group's revenues for fear of misleading investors. Orion had an annualised growth rate of 26 percent over the past 10 years, according to its offer documents. It posted a loss of $14.8 million in the six months ended Sept. 30, 2014 on sales of $80.5 million.
Telstra Health joins 20 institutional investors who bought into the company during its initial public offer.
Deutsche Craigs and First NZ Capital were joint lead managers in the offer, which doesn't have a public pool. The broker offer opened on Monday, and runs until Nov. 21. It will debut in a dual-listing on the NZX and ASX on Nov. 26.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more