Why Alliance Healthcare Shares Have Popped

Print Email

Alliance Healthcare Services Inc. (NASDAQ: AIQ) shares had a handy gain on Monday after the company received an expression of interest from its controlling shareholder. Specifically, Tahoe Investment Group has offered to acquire all the outstanding common shares for a purchase price of $9.60 per share.

Note that this company has a market cap of just under $100 million.

Tahoe, through its subsidiary, completed the purchase of the majority interest in Alliance back in March. At that time, the firmed owned approximately 52% of the outstanding common stock.

Alliance’s board of directors has authorized a special committee, comprised solely of directors not affiliated with Tahoe, to evaluate the expression of interest. The special committee has engaged independent legal counsel and intends to engage an independent financial advisor to assist in its evaluation of the expression of interest.

The expression of interest indicated that any transaction with Tahoe would be subject to approval by the special committee and a non-waiveable condition requiring approval of a majority of the shares of Alliance not owned by Tahoe or is affiliates.

For some background: Alliance Healthcare is a leading national provider of outsourced health care services to hospitals and providers. It also operates freestanding outpatient radiology, oncology and interventional services clinics, as well as ambulatory surgical centers that are not owned by hospitals or providers. This company is the nation’s largest provider of advanced diagnostic mobile imaging services, an industry-leading operator of fixed-site imaging centers, and a leading provider of stereotactic radiosurgery nationwide.

Shares of Alliance Healthcare were last seen up 13% at $9.05, in a 52-week trading range of $5.73 to $9.68.