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