Alliance Pharma PLC Disposal of Chinese rights to Forceval (0880L)
April 17 2018 - 2:00AM
UK Regulatory
TIDMAPH
RNS Number : 0880L
Alliance Pharma PLC
17 April 2018
For immediate release 17 April 2018
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Disposal of Chinese rights to Forceval(TM)
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical
group, announces that its wholly owned subsidiary, Alliance
Pharmaceuticals Limited, has agreed to sell its 60% interest in
non-core Unigreg Limited ("Unigreg") to its joint venture partner,
Pacific Glory Development Limited, for a consideration of GBP2.9
million.
Unigreg owns the rights to Forceval, a micro-nutrient supplement
used in pregnancy, in China and some nearby territories. Alliance
will continue to market the Forceval brand in the UK.
Through the Unigreg joint venture, Alliance has had an economic
interest in China since 2007 and it remains a key territory for the
Group. Last year, Alliance established its own affiliate in
Shanghai to market a range of child nutraceutical products sold in
China and to maintain close links to the Shanghai-based distributor
of Kelo-cote(TM) in China, the product's largest market.
The consideration of GBP2.9 million for the Unigreg shareholding
is being settled in cash with an initial payment of GBP2.4 million
at completion and a deferred payment of GBP0.5 million due on or
before 16 April 2019. In addition, all outstanding shareholder
loans made by the Group to Unigreg, totalling GBP1.5 million, will
be repaid in full prior to, and as a condition of, completion.
These initial cash receipts, totalling GBP3.9m, will be used by the
Group to reduce its current bank debt. Completion is expected to
take place on Wednesday 18 April 2018.
As at 31 December 2017, the Group's investment in Unigreg was
GBP1.2 million, representing an initial investment of GBP0.5
million, made in 2007, together with its share of unremitted
profits of GBP0.7 million. The profit on disposal, approximately
GBP1.5 million (net of fees), will be disclosed as a non-underlying
item in the Group's accounts for the financial year ending 31
December 2018. In 2017, the Group's share of profit from Unigreg
was GBP0.2 million.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
For further information:
Alliance Pharma plc + 44 (0) 1249 466966
John Dawson, Chief Executive Officer
Peter Butterfield, Deputy Chief Executive Officer
Andrew Franklin, Chief Financial Officer
www.alliancepharma.co.uk
Buchanan + 44 (0) 20 7466 5000
Mark Court / Sophie Wills / Gemma Mostyn-Owen
Numis Securities Limited + 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade / Freddie Barnfield
Corporate Broking: James Black / Toby Adcock
Investec Bank plc +44 (0) 20 7597 5970
Corporate Finance: Daniel Adams / Ed Thomas
Corporate Broking: Patrick Robb / Rob Baker
Notes to editors:
Alliance Pharma plc is an international specialty pharmaceutical
company.
Headquartered in Chippenham, UK, Alliance commenced trading in
1998 and has been listed on AIM since 2003. Alliance has a strong
track record of acquiring established niche products and it
currently owns or licenses the rights to approximately 90
pharmaceutical and consumer healthcare products. It has sales in
more than 100 countries either directly via its affiliates or
through its selected network of distributor partners.
Alliance joined the AIM market of the London Stock Exchange in
December 2003 and trades under the symbol APH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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