MDY Mdy Healthcare

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.

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