CML HealthCare Income Fund Expresses Interest in Pursuing a Transaction to Acquire Medisys Health Group Income Fund

    Toronto Stock Exchange Symbol: CLC.UN

    MISSISSAUGA, ON, Aug. 24 /CNW/ - CML HealthCare Income Fund ("CML
HealthCare") (TSX: CLC.UN) today announced it has notified the Board of
Trustees of Medisys Health Group Income Fund (TSX: MHG.UN) ("Medisys") that it
is strongly interested in pursuing a transaction involving Medisys, which may
include an acquisition of its securities and assets, a merger or other
mutually beneficial transaction. CML HealthCare holds units of Medisys.
    On August 14, 2007, the Elman family, the significant holder of Medisys,
announced it had delivered a written proposal to the Board of Trustees of
Medisys, through which Medisys would be taken private at a price of $7.00 net
per unit, in cash. CML HealthCare believes the offer price of $7.00 per unit
by the Elman family does not fully reflect the value of Medisys and the
underlying operating assets. CML HealthCare believes it can structure a
transaction whereby Medisys unitholders would receive superior value, at a
premium to $7.00, that would provide either immediate liquidity and/or an
opportunity to participate in the anticipated future growth of the combined
entities. Any transaction involving Medisys would be subject to completion of
due diligence, definitive documentation and customary conditions and

    Caution concerning forward-looking statements
    Statements made in this news release, other than those concerning
historical financial information, may be forward-looking and therefore subject
to various risks and uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate", "expect",
"intend", or "continue" or the negative thereof or similar variations. Readers
are cautioned not to place undue reliance on such statements, as actual
results may differ materially from those expressed or implied in such
statements. Factors that could cause results to vary include, but are not
limited to: dependence on government-based revenues; pending and proposed
legislative or regulatory developments including the impact of changes in
laws, regulations and the enforcement thereof; intensifying competition from
established competitors and new entrants in the businesses in which we
operate; technological change; interest rate fluctuations and general economic
conditions; insurance coverage of sufficient scope to satisfy any liability
claims; fluctuations in operating results; dependence on our operating
subsidiary to pay its interest obligations; fluctuations in cash distributions
and capital investment; management of credit, market, liquidity and funding
and operational risks; judicial judgments and legal proceedings; our ability
to complete strategic acquisitions and to integrate our acquisitions
successfully; changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with critical
accounting assumptions and estimates; operational and infrastructure risks
including possible equipment failure and performance of information technology
systems; fluctuations in total patient referrals; loss of services of key
senior management personnel; other factors that may affect future growth and
results including, timely development and introduction of new products and
services; changes in our estimates relating to reserves and allowances; future
sales of units; changes in tax laws; technological changes and obsolescence,
natural disasters, the possible impact on our businesses from public health
emergencies, international conflicts and other developments including those
relating to terrorism; and our success in anticipating and managing the
foregoing risks.
    We caution that the foregoing list of factors is not exhaustive and that
when reviewing our forward-looking statements, investors and others should
refer to the "Risk Factors" section of the Fund's Annual Information Form, the
"Risks and Uncertainties" and other sections of our Management's Discussion
and Analysis of Operating Results and Financial Position and our other
periodic filings with Canadian securities regulatory authorities. All
forward-looking statements presented herein should be considered in
conjunction with such filings. The Fund does not undertake to update any
forward-looking statements; such statements speak only as of the date made.

    About CML HealthCare Income Fund

    CML HealthCare Income Fund is an unincorporated open-ended trust that
owns CML HealthCare Inc., one of Canada's largest healthcare services
businesses. CML is a leading provider of laboratory testing services in
Ontario and the largest private provider of medical imaging services in
Canada. CML HealthCare Income Fund is publicly traded on the Toronto Stock
Exchange under the symbol "CLC.UN" and has approximately 86.6 million units
outstanding. To reach CML HealthCare Income Fund via the worldwide web log on

    %SEDAR: 00020333E

For further information:

For further information: Barry Hildred or Bruce Wigle, Investor
Relations, The Equicom Group Inc., (416) 815-0700 ext 224, ext 228, (416)
815-0080 fax, Email: or; Tom
S. Weber, CA, Chief Financial Officer, CML HealthCare Income Fund, (905)
565-0043, (905) 565-2844 fax, Internet:

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