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 (£12.500 million) and US$21million (£13.125 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 £1.65 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 £2.2 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 |
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Grahame Cook, Chairman | +44 (0) 20 3178 5925 |
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Zeus Capital Limited (Nomad) |
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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.
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