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Resurgence affiliate seeks access to SunLink's books in connection with $7.50-per-share offer
By Lisa Kerner
Charlotte, N.C., Jan. 14 - Berggruen Holdings North America Ltd. demanded to inspect "certain corporate books and records and other documents" of SunLink Health Systems, Inc. under Ohio Revised Code Section 1701.37(C).
The investor made the request in a Jan. 11 letter to the company's special counsel. The letter was included in a schedule 13D filing with the Securities and Exchange Commission.
On Nov. 7, Resurgence Health Group, Inc. stated its interest in acquiring SunLink for $7.50 cash per share.
Berggruen, SunLink's second-largest shareholder, teamed with Resurgence and agreed to provide the equity financing needed for Resurgence to close the transaction.
In the letter, Berggruen maintains that SunLink failed to substantially respond to a Dec. 7 letter as well as to a second letter on Dec. 28.
Berggruen also took issue with SunLink's failure to supply the names of the directors comprising SunLink's special committee and believes the company is not seriously considering the offer.
The investor, with a 9.4% stake in the company, also asked for a meeting with the special committee.
"The board's refusal to take action to become adequately informed regarding the offer is also contrary to SunLink's Nov. 8, 2007 press release stating that the board would consider and respond to the offer in a reasonable period of time," the letter stated.
Despite what Berggruen considers SunLink's "stonewalling," the investor has no plan to walk away from this transaction.
SunLink had acknowledged receipt of the offer and said it would consider the offer, a prior news release stated.
Resurgence is an Atlanta-based privately held company formed to acquire and operate rural and other small hospitals.
SunLink, also based in Atlanta, provides health-care services through the operation of exurban and rural community hospitals.
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