Allied Healthcare (AHCI) has a market cap of $109 mm and an EV of $73 mm. It is trading at 4x LTM EV/Ebitda. Octavian controls 6% of the shares outstanding.
Purpose of the Transaction
The Reporting Persons acquired the shares of Common Stock for investment purposes and, except as described below, do not have any present plans or proposals that relate to or would result in any change in the business, policies, management, structure or capitalization of the Issuer. The Reporting Persons believe, however, that unexploited opportunities to increase the value of the Common Stock may exist. To that end, the Reporting Persons intend to work with the Issuer’s management and board of directors regarding potential strategies to increase shareholder value and may take other steps to increase involvement with the Issuer. The Reporting Persons may also contact other shareholders regarding potential strategies to increase shareholder value. The Reporting Persons reserve the right to acquire, or dispose of, additional securities of the Issuer, in the ordinary course of business, to the extent deemed advisable in light of Funds’ general investment and trading policies, market conditions, the availability of shares of Common Stock or other factors.
Except to the extent the foregoing may be deemed a plan or proposal, the Reporting Persons have no plans or proposals which relate to, or could result in, any of the matters referred to in paragraphs (a) through (j), inclusive, of the instructions to Item 4 of Schedule 13D. The Reporting Persons may, at any time and from time to time, review or reconsider its position and/or change their purpose and/or formulate plans or proposals with respect thereto.