Medical imaging provider Integral Diagnostics has renewed it’s “take no action” message on a hostile takeover after reporting a fall in half-year profit.

The company is the subject of a takeover bid lodged at the end of November by fellow med tech Capitol Health.

On Friday Integral reported a 4.7 per cent drop in profit to $8.25 million for the half-year to December.

Revenue was up 5.6 per cent to $93.5 million.

“I am very pleased with the first half results,” chief Dr Ian Kadish told investors on Friday.

“The year-on-year improvement has been impressive and has been driven by integrating the three businesses into one cohesive operation, with strong medical leadership focused on quality care and service,” he said.

Ten days ago Integral upgraded full-year expectations for profit “before any transaction costs” from “high single digit growth” to “around 20 per cent before takeover response costs and transaction costs”.

The shares (ASX:IDX) were trading up slightly at $2.31 on Friday for a market cap of $332 million.

IDX shares have been boosted since the takeover bid. Source:
IDX shares have been boosted since a takeover bid. Source:

In November, Capitol (ASX:CAJ) put forward a bid of 6.9 Capitol shares and 36c cash for each integral share – which at Friday’s prices would be $2.29.

Capitol say together they would be a stronger, and more exciting force in diagnostic imaging.

“The combined group will have a larger referral network, providing greater revenue opportunities and will provide doctors of both businesses with greater options for continuing professional development and flexibility to operate across new regions,” they wrote in their bidder’s statement.

Integral described the offer as an “unsolicited hostile takeover bid” but Capitol say they had no choice but to go directly to the shareholders after the IDX board didn’t agree.

“While we have had productive discussions with the Integral Board regarding a potential merger in the past, ultimately we were unable to agree key terms. We have therefore taken our offer directly to you, the Integral Shareholders.”