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EKF Diagnostics Plans Potential Split of Business

NEW YORK (GenomeWeb) – Device firm EKF Diagnostics said that it is considering plans to split into two separate companies — one focused on point-of-care testing and the other on laboratory diagnostics.

As part of this plan, the company said it would delist its shares from the AIM market and seek listings for each new company separately in a market to be determined.

In a report to shareholders, EKF said that separating the companies represents a "better route for shareholders and one under which they are more likely to achieve a fair reflection of the value of each separate business."

For shareholders who don't want to wait for the outcome of this split, the firm said it is also considering a possible share buyback. Although not guaranteed to take place, the buyback would happen prior to the commencement of the separation at a price of £.22 ($.27) per share.

This isn't the first time that EKF has considered splitting out the point-of-care portion of its business. In 2015, the firm received several proposals to buy that unit after a strategic review initiated by its board spurred the investigation of a sale.

Those purchase proposals later fell through.