Gary Cohen, the founder of troubled healthcare software provider, iSoft (ASX:ISF), has commenced legal proceedings against investor, Oceania Capital Partners (OCP). The action could delay the buyout by CSC.
In a statement to the ASX, Cohen on behalf of RJL Investments (owned by the Cohen family), has written to OCP claiming that under its qualified statement of support for the approval in the buyout proposal, Oceania Healthcare Technology Investments (OHT), is required to provide RJL with a transfer notice of approximately 15 per cent of the OCP’s 24 per cent share holding in iSoft.
OCP has refuted claims that circumstances have arisen which OHT is required to supply a transfer notice.
Due to this, RJL has commenced legal proceedings against OHT claiming that it must provide a transfer notice, or it will vote against the scheme of arrangement with CSC.
Cohen served as the executive chairman and CEO of iSoft, until the August last year. He resigned as a director in September.
“While he remained an officer of iSoft, Cohen was involved in early meetings with CSC in relation to their interest in potentially making an offer for 100 per cent of iSoft, and Cohen was supportive of those discussions,” OCP said in the ASX statement.
The investor plans to vigorously defend the proceedings, and questions why it has been brought up.
“OCP is open to any proposal which it considers to be superior to the CSC proposal and we noted that we remain free to deal with our shares in iSoft,” OCP said. “OCP has made it clear to Cohen that if he has a genuine proposal that is more favourable than the current proposal by CSC, we would be happy to consider it.
“We have received no such proposal from Cohen.”
CSC made an offer to purchase iSoft earlier this month, via a court-approved scheme of arrangement. The deal, which is subject shareholder approval, offers $0.17 per share in cash to shareholders.