Strides Arcolab has acquired over 17.7% 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 Arcolab has acquired over 17.7% in ASX-listed Genepharm Australasia. Strides will vend its Australian and Asian business in exchange for the issue of shares in Genepharm.
Including the existing 2.1% 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%. On successful completion of the Genepharm transaction, Strides may emerge with a shareholding of 55% 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.