By OPEN MINDS Circle
Babylon Holdings Limited announced that the transaction proposed by AlbaCore Capital LLP (AlbaCore) and MindMaze Group SA (MindMaze), for a business combination of Babylon’s core operating subsidiaries with MindMaze, previously announced on June 23, 2023, will not proceed.
Following Babylon’s receipt of funding under its amended bridge notes facility with AlbaCore, Babylon has no binding commitment for additional financing to continue its business operations. As a result, the Group is exploring new strategic alternatives to find the best possible outcome for its UK business. Babylon remains focused on continuing the day-to-day operations of its U.K. business, providing accessibility of its health care services and the highest standards of care for its consumers and members. The Group is pursuing the divestiture of its UK business to third parties that may provide financing to assure the continuity of the operations. Babylon has built a successful, distinct, and sustainable U.K. business which provides high quality health care to many. However, it cannot provide assurance that any of these initiatives will result in Babylon entering into a definitive agreement for or completing a divestiture. Further, Babylon is exiting its core US business and plans to safely transition its US members to other provider organizations and continues to pursue its previously disclosed process for the sale of the Meritage Medical Network independent physicians association.
To explore these opportunities for a Third-Party Sale and enable business continuity, Babylon is in discussions with potential strategic partners to secure additional funding. Babylon cannot provide assurance that it will be able to secure sufficient liquidity to fund the operations of the Group’s businesses. To the extent that Babylon is unable to secure additional financing and complete a Third Party Sale of a particular business, the applicable entities of the Group will file for bankruptcy protection or implement other alternatives for an orderly wind down and liquidation or dissolution, which may include commencing Chapter 7 proceedings under the U.S. Bankruptcy Code and/or a U.K. administration for the applicable entities of the Group in the near term.
Any Third-Party Sale will be subject to AlbaCore’s rights under its debt agreements with Babylon, and the aggregate proceeds of any Third Party Sales are not expected to exceed the total amount of the Group’s indebtedness to AlbaCore. As a result, any such transaction will not provide for any payment to Babylon’s Class A ordinary shareholders and other equity instrument holders.
Babylon’s mission is to make quality health care widely accessible and affordable. To do this, the company is building an integrated digital first primary care service that can manage population health at scale. Founded in 2013, Babylon is reengineering how people engage with their care at every step of the health care continuum. Babylon is also working with governments, health provider organizations, employers, and insurers to provide them with a new digital-first platform that delivers high-quality health care with lower costs and better outcomes.
Contact information: Babylon Health, 1 Knightsbridge Green, London SW1X 7QA, United Kingdom; Email: press@babylonhealth.com; Website: https://ir.babylonhealth.com/