Disposal of investment in Medivance Inc. (8576Q)
26 Octobre 2011 - 8:00AM
UK Regulatory
TIDMMDY
RNS Number : 8576Q
MDY Healthcare PLC
26 October 2011
MDY Healthcare plc
Realisation of investment
26 October 2011: The Board of MDY Healthcare plc ("MDY
Healthcare" or, the "Company"), the strategic investor in
healthcare companies, is pleased to announce that the Company will
realise its investment in Medivance, Inc. ("Medivance"), subject to
the completion of the acquisition of Medivance by C.R. Bard Inc.,
(a NYSE listed company) for a total cash consideration of
approximately US$250 million (the "Transaction"). Completion of the
Transaction is expected to occur in Q4 2011, conditional on receipt
of US anti-trust clearances.
On completion of the Transaction, the directors of MDY
Healthcare anticipate that the Company will receive an estimated
gross cash consideration of between US$20 million (GBP12.500
million) and US$21million (GBP13.125 million) for the sale of its
10.4 per cent. holding in Medivance, depending on certain
completion adjustments. MDY Healthcare will make a further
announcement on completion of the Transaction, confirming the gross
cash consideration received.
MDY Healthcare has invested approximately $6 million in
Medivance in total through a series of investments. The Company's
last investment was in June 2009 when it invested $1 million.
MDY Healthcare currently has total outstanding indebtedness of
approximately GBP1.65 million plus accrued interest. On receipt of
proceeds, the Company will repay all outstanding debt together with
all accrued interest.
Following the realisation of the Company's investment in
Medivance, Stanmore becomes the Company's sole investment. The
Company will make a further announcement in due course about the
Company's strategy going forward and the use of the balance of the
proceeds from the realisation of Medivance.
Further information on Medivance can be obtained on Medivance's
website, www.medivance.com.
Grahame Cook, Chairman of MDY Healthcare said:"We are delighted
to announce the realisation, in cash, of our investment in
Medivance. The proceeds represent a substantial premium to our
investment of approximately $6 million and are considerably in
excess of our current market capitalisation of approximately GBP2.2
million. We will be making an announcement in the near future
setting out our strategy for the Company and the use of the balance
of the proceeds."
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). The Company seeks to
achieve superior returns for shareholders by investing globally in
companies, both public and private, across the healthcare sector.
The directors have significant operational and investment
experience in the sector and therefore the ability to identify and
review a wide range of potential investments. 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
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