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Telstra Health invests in Orion Health

Senescall Akers

Orion Health Group Limited (Orion Health) has today announced that Telstra Health, a business unit of Telstra Corporation Limited, has made a $20 million investment in Orion Health’s initial public offering as part of the bookbuild which was completed last week.

Telstra Health joins over 20 new institutions who will become shareholders in Orion Health as part of the IPO. Last week Orion Health announced its IPO price of $5.70 per share, the top of the indicative price range of $4.30 to $5.70 per share. The IPO raised $125 million, which comprised $120 million of new capital and a $5 million sale by Orion Health Chief Executive Ian McCrae.

McCrae says Telstra Health clearly understands the looming health data revolution driven by the huge expansion in health related data generated by mobile devices and applications.

"We welcome the investment by Telstra Health. This is an exciting time for both businesses, and in addition to their investment, we look forward to working together on eHealth initiatives for the Asia Pacific region."

Telstra Health Managing Director, Shane Solomon, says that the investment in Orion Health reflects Telstra Health’s ambition to be a leading provider of integrated eHealth solutions. "To create a truly connected health care system means working with providers, government and funders as well as some of the world’s best and most innovative solutions. Orion Health is a world leader in this sector and we are excited to work with them," Mr Solomon said. Telstra Health’s $20 million investment will represent a holding of approximately 2% of Orion Health’s shares. The Orion Health Broker Firm Offer opened on Monday 10 November for clients of NZX firms and will close at 5.00pm on 21 November. Shares are expected to commence trading on the NZX Main Board and ASX on 26 November 2014 under the stock code OHE. (Dates are indicative only and may be amended.)

Orion Health has applied to NZX Limited for permission to quote Orion Health’s ordinary shares on the NZX Main Board. Quotation is subject to approval by NZX and NZX accepts no responsibility for any statement made in this announcement. The NZX Main Board is a registered market operated by NZX Limited, a registered exchange under the Securities Markets Act 1988. Orion Health intends to apply to ASX Limited for permission to quote Orion Health’s ordinary shares on the ASX. Quotation is subject to approval by ASX and ASX accepts no responsibility for any statement made in this announcement. ASX is not a registered exchange under the Securities Markets Act 1988.

Applications for shares (Shares) under the initial public offering (the Offer) must be made on the application form accompanying the Investment Statement in respect of the Offer. Copies of the Investment Statement for the Offer are available at www.orionhealthshares.com. No person (including Telstra Health or Ian McCrae and his affiliated entities) guarantees the Shares, Orion Health or any obligations of Orion Health.