# ISF - iSoft Group



## Korban (25 September 2009)

Not sure why this share isnt in here, but wanted to get people's thoughts on it. I bought in at about 85c, and they've announced a SPP which im thinking of getting on? Probably a long term hold, but ihave faith in their work and it look like they could observe strong growth over the next 5 years with greater govt funding on healthcare and electronic records etc. 

Does anyone have an opinion on their SPP?


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## bigdog (25 September 2009)

Korban

iSoft was previously IBA and the ASF link is:

https://www.aussiestockforums.com/forums/showthread.php?t=1642&highlight=iba

Perhaps we should request the IBA link to be changed to ISF


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## swm79 (25 September 2009)

great company with a great product.... but WAY overvalued - valuation (by StockVal) at 19c - SP at 84c!!! thats 340% on their value.

If/when there's another big downturn and this share drops back closer (hopefully below) its valuation i'll buy.


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## bigdog (25 September 2009)

Korban

iSoft was previously IBA and the ASF link is:

https://www.aussiestockforums.com/forums/showthread.php?t=1642&highlight=iba

Perhaps we should request the IBA link to be changed to ISF


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## sircorp (16 May 2010)

*ISoft*

Well 

History tell there are time for each sector to boom. My estimate is mining boom is over(except energy) and health related stock are ready to ride the wave.


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## babka (2 June 2010)

*isf sp*

Well, what a disaster today!!! Not well worded announcement by the management and shorters of course are not helping. If I were brave enough I might have even averaged down. Any opinions about ISF future would be greatly appreciated.


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## oldblue (2 June 2010)

Do they intentionally make it difficult to read their press releases?

A sort of subtle hint not to bother?


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## Miner (3 June 2010)

*Re: ISoft*



sircorp said:


> Well
> 
> History tell there are time for each sector to boom. My estimate is mining boom is over(except energy) and health related stock are ready to ride the wave.




Great thoughts Sircorp

I am not sure however ISoft sells or produces ore body or health services.
So what was the context of your metaphor (even it was a good one)

Cheers


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## Miner (3 June 2010)

oldblue said:


> Do they intentionally make it difficult to read their press releases?
> 
> A sort of subtle hint not to bother?



You are dead right. First I thought the update was merely routine and then found it was disastrous result. Market read it and snapped the price by 39%.

Could not believe as I was about to buy it yesterday. Thank God for saving me from disaster if I bought on Monday.

I thought the intrinsic strenght was good but who predicts politics and if NHS ultimately does not allow them then the SP price will be begging . Wait and see is my motto now.


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## skc (3 June 2010)

Miner said:


> You are dead right. First I thought the update was merely routine and then found it was disastrous result. Market read it and snapped the price by 39%.
> 
> Could not believe as I was about to buy it yesterday. Thank God for saving me from disaster if I bought on Monday.
> 
> I thought the intrinsic strenght was good but who predicts politics and if NHS ultimately does not allow them then the SP price will be begging . Wait and see is my motto now.




ISF has falling revenue and profits for the last 4 half years... they are also getting killed by the currency with 75% of profit coming from UK/Euro zone.

Wait and see is definitely the way to go until there are signs of turnaround.


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## noie (3 August 2010)

I must admit i never noticed this one, being right at the bottom of the ASX200.

(the report pointed me to it)

regarding the June comment about falling revenue they have been expanding during that time. 3 Halves, 3 buys.. 

On April 24, 2009, the Company acquired Hatrix Pty Limited. 
On August 12, 2009, iSOFT Group Limited acquired BridgeForward, Inc. 
In February 2010, the Company acquired UltraGenda BV.


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## Korban (6 August 2010)

swm79 said:


> great company with a great product.... but WAY overvalued - valuation (by StockVal) at 19c - SP at 84c!!! thats 340% on their value.
> 
> If/when there's another big downturn and this share drops back closer (hopefully below) its valuation i'll buy.




Well that was pretty spot on! Its below that valuation now - im thinking of averaging down big time. i think something is looming with some big buys coming out over this week.


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## bigdog (31 August 2010)

The market did not like the ASX ANN!

*ISF 0.125 $-0.040 (-24.242%) @ Tue 31 Aug 2010 10:50 AM *

31/08/2010  10:07:00 AM  FY2010 Results announcement and investor pack 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01093417

*EBITDA (pre exceptional and one off items) $41.5 million

Review of business, debt and capital structure underway - Gary Cohen to step down as CEO*

Sydney – Tuesday, August 31 2010 – iSOFT Group Limited (ASX: ISF) today released its full year result for the year to 30 June 2010 together with an investor information pack. It also announced that it is pursuing a number of strategic initiatives.

*Key Financials:*
• Total revenue down 20% to $431 million (or 7% in constant currency terms)
• Reported EBITDA down 77% to $30.0 million (or 78% in constant currency terms)
• EBITDA pre exceptional and one off items down 69% to $41.5 million
• Operating cash – negative $0.69 million
• One off impairment of $341 million primarily goodwill
• Statutory loss of $383 million 

Chairman, Robert Moran, said: “This financial result is a disappointing one that does not reflect the underlying strength and technical sophistication of iSOFT’s products, the Company’s global footprint or the quality and dedication of its staff. A difficult economic environment (particularly in the public sector in a number of the Company’s markets), adverse currency impact, delays to the implementation of the National Programme for IT (NPfIT) in the UK and an increased cost structure all contributed to this result.”

Mr Moran said iSOFT’s Board has commenced an in-depth review of the company’s business operations and a number of aspects of that review are already in the process of implementation. With a focus on key geographies with the best growth prospects, it has already targeted:
• operational cost savings of $50 million (annualised) to be achieved by end of June 2011, with over half of this amount through headcount reductions. These are targeted reductions and are not expected to jeopardise the growth prospects of iSOFT.
• accelerating the streamlining and harmonisation of its product portfolio, which has already been reduced from more than 200 to 150 products
• a reorientation of business development and R&D to achieve greater flexibility and speed to market for new products

As part of the review, iSOFT Chief Executive Officer, Gary Cohen, has agreed to step aside as CEO to focus on assisting the Board in the evaluation of strategic options for the company.

“Gary’s leadership, vision and drive have transformed the company into a multinational organisation and a very significant participant in the healthcare IT segment globally,” Mr Moran said. “I would personally like to thank him for his extraordinary dedication and achievements over the past 10 years as Chairman and more recently as Chief Executive”.

“Gary has agreed to remain with the Company to assist with transition and our strategic development. His experience and knowledge of the specialised sector internationally will be invaluable as we begin the search for a new chief executive who will drive the company forward in this next phase of its evolution.”

An executive search firm has been engaged to assist in finding a new CEO. Pending appointment of a new CEO, Andrea Fiumicelli, the Company’s Chief Operating Officer, has agreed to serve as acting CEO. Andrea Fiumicelli joined iSOFT Group in April 2008 as Chief Operating Officer following a successful career in Healthcare IT within multinational organisations.

iSOFT has also commenced the process for identifying suitably qualified candidates from both the UK and Australia to join the Board in a process that will see Board renewal.

Owing to the recent trading position of the Company, a restructure of the Company’s senior debt facilities is required as well as a review of its capital structure. Discussions continue with iSOFT's banking syndicate.The Board has appointed financial and legal advisers to undertake a comprehensive review of iSOFT’s capital and debt structure and talks are ongoing with prospective strategic and institutional investors. In addition, iSOFT is considering potential asset disposals. Any such asset sales would be structured so as not to damage the Company’s core business assets, being its strong product suite and its geographic footprint. iSOFT has continuing support from its major shareholder OCP. For more details, please refer to the Preliminary Final Report.

Mr Moran said that while iSOFT has already made significant progress in assessing its strategic initiatives, discussions are ongoing and the timing and outcome is uncertain. iSOFT will update the market on progress when those decisions have been taken.

Notwithstanding these discussions and the strategic review, the core business of the Company remains healthy. The Company commenced FY2011 with $300 million recurring and or contracted revenues. Further it has a strong and growing pipeline of business for FY2011 that should compensate for the expected decline in the National Programme for IT revenue. The Company believes that with the initiatives discussed above it is expected to return to profitability and positive cash flow.

Although iSOFT is an Australian company whose shares are listed on the ASX, the majority of its business is in the UK and Europe, with earnings exposed to translation risk due to AUD reporting requirements. In FY2010, 73% of iSOFT’s revenues were denominated in GBP and Euro. Owing to the strong appreciation of the AUD (up to 25% against both the GBP and Euro at its peak), iSOFT suffered an adverse impact on its reported revenue of around $109 million against the prior year.

*FY2010 results analysis*
The actual fall in underlying revenue (when measured on a constant currency basis) was around $30 million, most of which was attributable to delays in the implementation of the UK NPfIT.“ The decline in the NPfIT revenues and the overall slowing down of growth in the core business hit particularly hard in the second half. With the cost structure relatively fixed this flowed through to a decline in earnings.” Mr Moran said.

As a result of the more subdued economic environment in iSOFT’s markets, the company has reduced its internal projections for growth in Central Europe, Middle East and Africa, South East Asia and Australia. This has resulted in the company recording a significant impairment of its carrying values of intangibles (primarily goodwill associated with the iSOFT acquisition) and deferred tax assets. Consequently, the Company recorded a total impairment of these items of $341 million in FY2010. As a result of the impairment, iSOFT reported a statutory loss $383 million in FY2010.

Operating cash flows in FY2010 were marginally negative overall at -$0.69 million. There is a seasonality in operating cash flows with a tendency for operating cash flows to be weighted to the second half. Second half FY2010 operating cash flow was $11.4 million.

The Company will not be paying a dividend for the FY2010 year.

1197


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## RADV (21 October 2010)

Despite the poor share price result of late, I still believe this company has a good product and a sound core business. Would appreciate thoughts - anyone brave enough to scoop it up while it's cheap?


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## skc (21 October 2010)

RADV said:


> Despite the poor share price result of late, I still believe this company has a good product and a sound core business. Would appreciate thoughts - anyone brave enough to scoop it up while it's cheap?




Any revenue and profit from the UK National Health programme probably not looking very good on the strength of $AUD and the UK government announcement of austerity program.

Other than that it's a dog with flees in general. Couldn't make much money in the good times so not that much hope in the bad times...

May be they will get taken over (by some PE mob perhaps)? But a 30-40% takeover premium doesn't justify the risk of them going belly up imo.


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## Greedy_Kev (14 November 2010)

RADV said:


> Despite the poor share price result of late, I still believe this company has a good product and a sound core business. Would appreciate thoughts - anyone brave enough to scoop it up while it's cheap?




I bought a little, its one of my really high risk investment stocks, it's a good company, but the company has massive debt levels, debt/equity ratio is 85%!! and the company relies on UK government spending (Hospitals) which isn't looking so good, i reckon UK goven is going to be even bigger trouble than US  :grenade:.

Despite the risk, i think that the size and position in which this company is in, means if there was a bounce back, ISF would be really rewarding.

If u were to buy, just buy a little and think of it as buying to lottery


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## RADV (17 November 2010)

These sort of announcements would probably help...

Banbury – 8 November 2010 – iSOFT Group Limited (ASX:ISF) has agreed contracts with Pennine Acute Hospitals NHS Trust for an upgrade of an existing patient administration system (PAS) to provide additional patient and clinical functionality, under trust plans to improve patient care by improving the clinical information available to staff at its four hospitals in north Manchester, Bury, Rochdale and Oldham.

http://www.isofthealth.com/~/media/...elease - UKI - Pennine Acute _FINAL_ _3_.ashx


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## bigdog (1 December 2010)

http://www.theaustralian.com.au/bus.../story-e6frg8zx-1225963538315?from=public_rss

*Debt-laden iSoft Group in the market for a buyer *
Michael Bennet From: The Australian December 01, 2010 

THE troubled iSoft Group has revealed that the "for sale" sign is up, as it continues to assess ways to repay its $240 million debts. 

At the health IT company's annual general meeting in Sydney yesterday, chairman Robert Moran told a disgruntled shareholder selling the whole business was possible.

"Yes, it's one of the options," he said, without revealing if an offers had been received.

The shareholder questioned iSoft's management after the company gave little guidance and the shares plunged 90 per cent this year. The shares lifted 5.4 per cent yesterday to 7.8c.

"The reason I think probably all of us are here is because we think it's worth more than 7c," Mr Moran said.

iSoft is in the middle of a strategic review with advisers UBS to pay down debt, cut costs and overhaul its capital structure, which Mr Moran described as "wrong".

He said iSoft was in a tenuous position and had until its debt matures in March 2012 to turn its business around.

But Mr Moran, who is also managing director of iSoft's largest shareholder, Oceania Capital Partners, formerly Allco Equity Partners, told another shareholder he could not say how the company would reduce its debt. "The levers you've got . . . is sell assets, raise capital, sale of the business, operational restructure, and they're the levers we're pulling and moving forward with, but at this stage I don't have an answer to exactly how that will happen," he said.

He said OCP would weigh up any moves, including an equity raising, but remained supportive.

On top of the board changes this year, Mr Moran said yesterday he would resign to enable the appointment of an independent chairman. Long-term chief executive Gary Cohen left following the company's $383m full-year loss in August, and directors Anthony Sherlock, Claire Jackson and Peter Wise are all to depart. iSoft yesterday appointed Graincorp director Peter Housden to the board.

But when asked about the departures by a shareholder, Mr Moran said the directors were not "getting out" because the troubles were "too hard".

Despite the challenges, Mr Moran said iSoft remained a "great company operating at the cutting edge of the e-health industry", but he admitted its difficult position made guidance hard to give.

073


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## RADV (1 December 2010)

Thanks bigdog.

It doesn't look very promising, does it, when the Chairman says things like he doesn't know how the company is going to get out of debt 

A sale could be good news...


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## bigdog (14 December 2010)

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NzQzNDV8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

*Sale of non-core assets to enable debt reduction of $28.5 million*

Sydney – 14 December, 2010 – iSOFT Group Limited (ASX: ISF) today announced the following to the market:

iSOFT has sold iSOFT Business Solutions (iBS), its financial management solutions business to Capita Group plc (Capita). The business was classified non-core as part of iSOFT's ongoing strategic review. Together with the proceeds from another smaller asset sale, Monet, a GP administration software, iSOFT has $28.5 million available to pay fees related to the refinancing and reduce the senior bridge revolver facility in our group debt.

iSOFT Business Solutions offers financial management, purchasing and e-business solutions to customers across both public and private sectors primarily in the UK and Ireland. It generated revenue of £17.7 million and EBITDA of £5.8 million in the year to 30 June 2010. Chief Executive Officer Andrea Fiumicelli said: “While iBS is a profitable business, its key products, Oracle’s e-business suite and Integra financial accounting solutions, have little overlap with iSOFT's proprietary core patient-focused healthcare IT business. Given this, and our strong desire to reduce debt, the divestment was deemed appropriate and in line with our strategy of focusing on core patient-specific health care products going forward.” The business is being sold for a debt free / cash free equivalent value of £23.2m.

iSOFT’s UK and Ireland healthcare business remains unaffected by the sale.

*Debt facilities update*
The size of iSOFT’s bridge facility will be reduced from £40m (A$64.5m) to £23.2m (A$37.4m) in accordance with the facility documentation. This will reflect net asset sales proceeds of £17.7m (A$28.5m) being applied to reduce group indebtedness and Capita assuming iBS financing obligations.


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## youngone (3 March 2011)

Is anyone holding ISF?


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## Korban (3 March 2011)

A big unfortunately yes  . No point in selling now.


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## RADV (3 March 2011)

Yes, hanging in there  No point selling really.


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## isplicer (3 March 2011)

Any hope at all of recovery at any stage?


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## Poppypop (10 March 2011)

Yes, i hold in hope. No point selling now for huge losses. I only need it to get to 8.5cents to break even.


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## youngone (24 March 2011)

Can someone analyze whats happening in ISF. 

The price has jumped from .035 to .055 in 2 days.


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## skc (24 March 2011)

youngone said:


> Can someone analyze whats happening in ISF.
> 
> The price has jumped from .035 to .055 in 2 days.




Halted now pending release of strategic review.

May be someone taking them over.

May be they realise they are insolvent.

The latest budget in the UK wouldn't have been kind to them.


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## bigdog (2 April 2011)

> *CSC buys iSoft *
> By Beverley Head
> Saturday, 02 April 2011 06:57
> 
> ...




More: http://www.itwire.com/it-industry-news/listed-techs/46272-csc-buys-isoft


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## Greedy_Kev (2 April 2011)

Poppypop said:


> Yes, i hold in hope. No point selling now for huge losses. I only need it to get to 8.5cents to break even.




Haha i guess we both pretty much doubled our money now


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## skc (4 April 2011)

bigdog said:


> Software and services giant CSC announced overnight that it had signed an agreement to buy troubled healthcare solutions provider (and a key supplier to CSC) iSoft for $0.17 a share. The cash offer is subject to shareholder and regulatory approval.




That is one generous offer considering it was trading at 5.3c not too long ago.

CSC is a partner in some of ISF's businesses so it's possible there's some operational leverage for them that makes the value more compelling.


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## Kushin (4 April 2011)

Poppypop said:


> Yes, i hold in hope. No point selling now for huge losses. I only need it to get to 8.5cents to break even.




lmao lucky you held onto it.. big jump today. does anyone think it will continue to rise?


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## kingcarmleo (4 April 2011)

Reckon another bid might come in, either way good value.


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## youngone (5 April 2011)

Awww. I'm so glad i held my head high . Anyone with any prediction?


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## skc (5 April 2011)

youngone said:


> Awww. I'm so glad i held my head high . Anyone with any prediction?




Apparently the founder of iSoft may have a go...



> ISOFT founder Gary Cohen has indicated he may make a counter offer for the healthcare software company less than 48 hours after US information technology services group Computer Sciences Corporation announced a takeover bid.




http://www.theaustralian.com.au/bus...-software-outfit/story-e6frg9hx-1226033635547


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## Greedy_Kev (5 April 2011)

Kushin said:


> lmao lucky you held onto it.. big jump today. does anyone think it will continue to rise?




I think it will rise after government approval, coz this is a very good deal for csc so if the offer is rejected by shareholders, I think they will increase offer slightly.


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## youngone (5 April 2011)

Prediction says its going to hit at least .170. 
Anyone with any insight?


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## bigdog (6 April 2011)

Perhaps a higher price!



> *Founder ponders iSoft counter offer for healthcare software outfit *
> Katherine Jimenez From: The Australian April 05, 2011 12:00AM
> 
> ISOFT founder Gary Cohen has indicated he may make a counter offer for the healthcare software company less than 48 hours after US information technology services group Computer Sciences Corporation announced a takeover bid.
> ...




More: http://www.theaustralian.com.au/bus.../story-e6frg9hx-1226033635547?from=public_rss


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## skc (6 April 2011)

youngone said:


> Prediction says its going to hit at least .170.
> Anyone with any insight?




That's not a prediction. That's the offer price!

Something's not right... share trading at 15c so if the deal goes ahead you get 13% return in about 6 months... the speculators (like me) should be all over this.

But I can't see the pitfalls of the deal...
- Banks are happy
- Major share holders are selling
- Board's agreed
- No further due diligence condition
- Prospect of higher bid

Actually I can think of something (just a random guess) .... ISF has big business with the UK government and there may be clauses in those contracts about change of control??


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## skyQuake (6 April 2011)

skc said:


> That's not a prediction. That's the offer price!
> 
> Something's not right... share trading at 15c so if the deal goes ahead you get 13% return in about 6 months... the speculators (like me) should be all over this.
> 
> ...




2ndQ 2012 so its appears to be maybe more than a yr.
I think main hurdle now is EU M&A board


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## stock nub (6 April 2011)

skyQuake said:


> 2ndQ 2012 so its appears to be maybe more than a yr.
> I think main hurdle now is EU M&A board




Sky where did you get the 2nd Q 2012 from????

This is straight from the ISF annoucement.
Sorry about the formatting.

Timetable
Event Indicative date

Enter into Scheme Implementation Agreement                              30 March 2011

Provide Scheme Booklet to ASIC for review and comment                 27 April 2011

First Court Date                                                                     11 May 2011

Scheme Booklet registered by ASIC and lodged with ASX              18 May 2011

iSOFT Board meeting to approve Scheme Booklet and its dispatch    18 May 2011

Dispatch Scheme Booklet to iSOFT Shareholders and Optionholders 18 May 2011

Latest date for return of completed proxy forms for Scheme Meeting 15 June 2011

Eligibility for voting at Scheme Meeting and Option Scheme Meeting
determine                                                                                15 June 2011

Scheme Meeting and Option Scheme Meeting determined                 17 June 2011

Second Court Date (SCD)                                                           24 June 2011

Notify ASX of Court approval of the Scheme and Option Scheme        24 June 2011

Effective Date (lodge office copy of Court order approving the Scheme
and Option Scheme with ASIC)                                                     27 June 2011

iSOFT Shares suspended from trading on ASX                                  27 June 2011

Scheme Record Date                                                                     1 July 2011

Implementation Date                                                                      6 July 2011


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## skyQuake (6 April 2011)

Interesting, had a look through it again.

DJ Newswire had it as 2Q2012

Bloomberg had it as 2Q2012 FY

so now we have Dec or Next June as possible dates


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## youngone (11 May 2011)

This company has been more like a donkey ride, then an express train.


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## bigdog (27 May 2011)

http://www.zdnet.com.au/isoft-takeo...mpaign=Feed:+zdnetaustralia+(ZDNet+Australia)

*iSoft takeover hits new roadblock*
By Josh Taylor, ZDNet.com.au on May 27th, 2011 

*The sale of troubled healthcare software company iSoft to Computer Sciences Corporation (CSC) has again come under threat, with shareholders raising concerns in the Federal Court yesterday over the purchases of convertible notes. *

Oceania Capital Partners (OCP) is a 24.5 per cent shareholder of iSoft, as it has $39 million in convertible notes in the company. In a move to clear all company debts before CSC takes over,The sale of troubled healthcare software company iSoft to Computer Sciences Corporation (CSC) has again come under threat, with shareholders raising concerns in the Federal Court yesterday over the purchases of convertible notes. 

Oceania Capital Partners (OCP) is a 24.5 per cent shareholder of iSoft, as it has $39 million in convertible notes in the company. In a move to clear all company debts before CSC takes over, the company is seeking to buy up all of these convertible notes at face value.

This has concerned the other shareholders in the company, notably former chairman Gary Cohen's company RJL Investments, as CSC has offered just 17 cents per share to acquire the company.

At a Federal Court hearing yesterday, seeking court approval to send out the documents for the scheme of arrangement for the takeover ahead of the shareholder vote, Justice Arthur Emmett said that shareholders may be of the belief that as the convertible notes are being paid out in full, they may not be getting the full value for their shares.

"An inference can be drawn ... that they're not worth as much as they're being paid for," Emmett said in court yesterday. "There is a real possibility that I would conclude that these notes are not worth $39 million."

Emmett said that the last valuation in December 2010 had the notes valued at some $20 million, and ordered an independent valuation of the notes to be handed back to the court before a further hearing on 3 June to decide whether to allow the documents for the scheme of arrangement to be sent out.

Cohen lost to OCP in the NSW Supreme Court a week ago today in his attempt to secure 15 per cent of OCP's shares as part of a previous agreement that he said he had made with the investment fund. Cohen had intended to use those shares to attempt to block the CSC takeover, saying that he had received other offers in the troubled health software company.

This has concerned the other shareholders in the company, notably former chairman Gary Cohen's company RJL Investments, as CSC has offered just 17 cents per share to acquire the company.

At a Federal Court hearing yesterday, seeking court approval to send out the documents for the scheme of arrangement for the takeover ahead of the shareholder vote, Justice Arthur Emmett said that shareholders may be of the belief that as the convertible notes are being paid out in full, they may not be getting the full value for their shares.

"An inference can be drawn ... that they're not worth as much as they're being paid for," Emmett said in court yesterday. "There is a real possibility that I would conclude that these notes are not worth $39 million."

Emmett said that the last valuation in December 2010 had the notes valued at some $20 million, and ordered an independent valuation of the notes to be handed back to the court before a further hearing on 3 June to decide whether to allow the documents for the scheme of arrangement to be sent out.

Cohen lost to OCP in the NSW Supreme Court a week ago today in his attempt to secure 15 per cent of OCP's shares as part of a previous agreement that he said he had made with the investment fund. Cohen had intended to use those shares to attempt to block the CSC takeover, saying that he had received other offers in the troubled health software company.


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