August 22, 2016 - 9:17 AM
BRAMPTON, Ont. - Loblaw Companies Ltd. (TSX:L) is planning another acquisition in the health-care industry, offering $170 million to buy a B.C.-based company that provides secure medical records technology.
The Canadian grocery and pharmacy giant is offering $3.10 cash per share of QHR Corp. of Kelowna, B.C. (TSXV:QHR) — 22 per cent above the stock's closing price Friday on the TSX Venture Exchange.
Loblaw says QHR is a "natural complement" to its Shoppers Drug Mart business — which operates Canada's largest retail network of pharmacies.
RBC Dominion Securities analyst Irene Nattel said in a note that the transaction is not expected to be material to Loblaw's results, but should be a nice complement to the company's existing pharmacy and healthcare operations.
QHR currently supports 7,700 healthcare providers with a suite of secure medical records technology.
Its board of directors is supporting the Loblaw takeover bid but the deal requires approval from at least two-thirds of the votes cast by QHR shareholders at a special meeting to be held in October.
News from © The Canadian Press, 2016