Company Watch

Strides in pact with Genepharm

Our News Bureau - Mumbai

Strides has signed a definitive agreement with Genepharm Australasia Limited (GAA). Under the terms of the agreement Strides will vend its Australian and Asian business in exchange for the issue of shares in Genepharm, subject to approval of Genepharm shareholders. Strides has acquired a relevant interest of over 17.7 percent of the issued shares in ASX-listed Genepharm under a share acquisition agreement with a group of Genepharm shareholders based in Cyprus that are associated with Genepharm's largest shareholder, Genepharm Asia Pacific Enterprises Limited (GAPE transaction). When added to the existing 2.1 percent of Genepharm shares over which Strides currently has a relevant interest, the GAPE transaction takes Strides' total relevant interest in Genepharm issued shares to approximately 19.8 percent. On successful completion of the Genepharm transaction, Strides may emerge with a shareholding of approximately 55 percent of the expanded capital base of Genepharm. The combined regional businesses are expected to have revenue of approximately A$ 100 million on closing of the Genepharm transaction.

The transaction has been assessed by an independent expert as being fair and reasonable to the non-associated shareholders of Genepharm. The terms of the transaction are consistent with the original heads of agreement announced earlier, except that the purchase consideration for the acquisition of Strides' Australian and Asian operations has been reduced from A$ 65.0 million to A$61.0 million, with Genepharm proposing to assume approximately A$ 4.1 million of existing debt within the business. The issue price of the shares paid to Strides as purchase consideration is A$ 0.55 per share compared to the original price of A$ 0.60 per share, reflecting Genepharm's recent trading results and share price performance.