CEO Jim Fox said some of the proceeds of the sale would be returned to shareholders and part directed to the development of the group’s health care operations. He said the sale of the fire and security division, expected to be completed in 6 weeks, would transform Vision Systems into a biomedical products and research and development company. Dr Fox said the strong international sales growth had continued into 2006 and equipment sales to pathology laboratories were “ramping up strongly”. However, he said Vision’s shares were undervalued. Subtracting the $A253 million fire and security valuation left just $A126 million covering the health care and research and development operations. “It doesn’t stack up, does it?” he said. “Novocastra alone is worth that much. On top of that there is the pathology instruments and Invetech, the research arm. “The next step is for people to really appreciate what’s in the health care play.” Dr Fox said the price paid for fire and security might help investors appreciate how these companies were valued by international investors. The sale process, started in September and conducted by the Caliburn Partnership, simultaneously considered a sharemarket float and a trade sale. Dr Fox told SMH the directors had been happy with fire and security. Only the undervaluation had prompted its sale. “It’s the world leader in high sensitivity smoke detection and is a fantastic cash generator,” he said.