Update on realisation of Medivance investment (9170S)
November 29 2011 - 2:00AM
UK Regulatory
TIDMMDY
RNS Number : 9170S
MDY Healthcare PLC
29 November 2011
MDY Healthcare plc
Update on realisation of Medivance investment
29 November 2011: On 26 October 2011, the Board of MDY
Healthcare plc ("MDY Healthcare" or, the "Company"), the strategic
investor in healthcare companies, announced that the Company
expected to realise its investment in Medivance, Inc.
("Medivance"), subject to the completion of the acquisition of
Medivance by C.R. Bard Inc., for a total cash consideration of
approximately US$250 million (the "Transaction"). Completion of the
Transaction was expected to occur in Q4 2011, conditional on
receipt of US anti-trust clearances.
Following completion of the Transaction on 10 November 2011, the
Board of MDY Healthcare confirms that the Company will receive
gross cash consideration of approximately US$21.8 million (GBP13.98
million) for the sale of its holding in Medivance. The Board
further confirms that it has been advised that the receipt of the
proceeds are not expected to give rise to a tax liability for the
Company.
Of the total gross cash consideration, US$19.96 million
(GBP12.80 million) was received by the Company on 28 November 2011.
The balance, which is being held in escrow pending potential
warranty and indemnity claims in accordance with the terms of the
Transaction agreements, is due to be paid out to MDY Healthcare, to
the extent not utilised, within the next 17 months.
As stated previously, MDY Healthcare currently has total
outstanding indebtedness of approximately GBP1.65 million plus
accrued interest. Following receipt of the proceeds, the Company
will repay all outstanding debt together with all accrued interest.
As a result of the completion of the Transaction, Stanmore is the
Company's sole remaining investment.
Following the repayment of the debt referred to above, the
Company intends to return the majority of the funds received from
the realisation of its investment in Medivance to shareholders by
the end of March 2012 and is in discussions with its advisers on
the most efficient and timely way to achieve this. The Company's
strategy going forward is to make further payments to shareholders
on receipt of any escrow funds and the realisation, at the
appropriate time, of the Company's investment in Stanmore.
The Company will make a further announcement regarding the
return of funds to shareholders in due course.
For further information, please contact:
MDY Healthcare plc
Grahame Cook, Chairman +44 (0) 20 3178 5925
Zeus Capital Limited (Nomad)
Ross Andrews, Andrew Jones +44 (0) 161 831 1512
Notes for editors:
About MDY Healthcare
MDY Healthcare plc is a sector specialised strategic investing
company quoted on AIM (ticker symbol: MDY). Further information can
be found on the website www.mdyhealthcare.com.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
STREAKFPASLFFFF
MDY Healthcare (LSE:MDY)
Historical Stock Chart
From Aug 2024 to Sep 2024
MDY Healthcare (LSE:MDY)
Historical Stock Chart
From Sep 2023 to Sep 2024