Technology and services group Hills Limited has postponed the proposed merger of its health solutions business with global firm Lincor, blaming "market volatility" for the delay.
Hills shares plunged more than 20 per cent after the company said the merger deal, announced on September 13, had been deferred and at 1301 AEDT remained 10.25 cents, or 17.4 per cent, lower at 48.75 cents.
Hills plans to merge its Hills Health Solutions business with Lincor Solutions Inc to create a new business, Lincor Limited, which would be demerged, spun off and listed on the ASX.
"Due to current market volatility, the proposed Lincor Limited initial public offering to raise the required capital has now been deferred along with the proposed demerger," Hills said in a statement to the ASX on Monday.
"Hills and Lincor Solutions Inc shareholders, however, remain committed to the merger given the significant synergies available to the combined business."
Hills, famous as the company behind the Hills Hoist clothesline, in recent years has shifted to distributing products including CCTV, security alarms and hospital communications systems.
Through its Health Solutions business, Hills is a provider of monitoring and communications systems for hospitals and aged care facilities.
Lincor is a provider of patient management software and communications systems at health and aged care facilities around the world, including in Australia.
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