By Gavin Evans
Nov. 5 (BusinessDesk) - Orion Health Group has raised the minimum price it expects for its coming share buyback by about 3 percent.
The buyback, part of the firm’s recent restructuring, will likely be priced at $1.20 to $1.25 a share, the health technology company said today.
The lift, from the previously indicated range of $1.16 to $1.26 a share, reflects a better understanding of expected cash holdings with the completion of the sale to Hg last week, the firm said.
The buyback, expected later this month, follows the company’s decision to sell its Rhapsody unit to UK private equity firm Hg for $205 million, dilute its stake in its population health management unit, and retain full ownership of its hospitals division.
After capitalising the firm’s joint investments, the remainder of sale proceeds were to be allocated for the buyback.
Shareholders approved the transactions in late September.