SMG

SMG announced acquisition of women's specialist clinic chain for $60m
- Astra Women's Specialist group comprises of 6 O&G clinics with 5 reputable doctors
- Five year profit guarantee of $4.6m per year
- Consideration to be funded through shares ($0.33288/share) as well as $33m in cash
- Purchased at implied P/E of 13x versus SO&G's 29.4x forward P/E
- Proforma FY16E net profit (if acquisition was completed in Jan '16) = $10.5m indicating a P/E of 13.4x.
- Counter currently in a trading halt