Out of IBA

I sold my IBA shares this morning (at $1.22 per share), after holding them for quite sometime in their downtrend. I should have done that a while ago, when the price was $1.50s (... as the people said, if you failed to pick the fruit when it is ripe, you will find it goes bad one day.. oh well..)

I like IBA and I believe that it's a very good company. I am thinking to enter the market again, once the price have settled. Bought in for the first time when they're $0.97, this company is surely going places. This morning announcement, however, wasn't exactly what you will expect to bring the price up in a medium short term.. conditional placement of $1.05 per share and renounceable rights issue..

Here is the announcement:

IBA announces A$333 million recommended offer for iSOFT creating one of the world's largest eHealth companies

16 May 2007, IBA Health Limited (ASX: IBA), Australia's largest listed eHealth company, today announced that IBA and the board of iSOFT Group plc (LSE: IOT) (iSOFT) have reached agreement on the terms of a recommended all-share offer under which IBA will acquire the entire ordinary share capital of iSOFT, creating one of the world's largest healthcare information systems providers.

Under the terms of the offer, to be effected by a scheme of arrangement, iSOFT shareholders will be entitled to receive 1.1 new IBA shares for each iSOFT share, valuing each iSOFT share at A$1.38 (58.1 pence) and iSOFT's equity capital at approximately A$333 million (£140 million).

IBA also announced today that:

• it has successfully launched and allocated a A$54.5 million conditional placement of 51.9 million IBA shares at an issue price of A$1.05, which was over-subscribed by a range of international and domestic institutions;
• a A$145.4 million renounceable rights issue offering IBA shareholders 2 new IBA shares at a price of A$1.05 per share for every 5 shares they own at 24 May 2007 has been fully underwritten by ABN AMRO Rothschild; and
• ABN AMRO has agreed to provide to IBA new debt facilities of £130 million (A$309 million), subject to satisfying a number of conditions.
  
  These funds will enable IBA to refinance iSOFT's existing bank facilities, which are repayable on a change of control, and will provide the enlarged group with working capital, an appropriate capital structure and a strong balance sheet.