26th Nov 2015 08:04
LONDON (Alliance News) - Pharmaceutical company Sinclair IS Pharma PLC on Thursday said it has struck a deal to sell its non-aesthetics business to Alliance Pharma PLC for GBP132.0 million in cash, as its loss for the year to the end of June widened.
Sinclair said the deal will simplify its operations and sharpen its portfolio to focus on aesthetic-led, minimally-invasive treatments. The company will change its name to Sinclair Pharma PLC and said it remains in an offer period under the Takeover Code as it continues to assess potential options for its aesthetics portfolio.
Under the deal, Alliance Pharma, a fellow AIM-listed firm, will acquire 27 products, materially increasing the scale of its business. It said the deal will significantly boost its presence outside the UK and expects the deal to be significantly accretive to earnings in the year to the end of December 2016.
Alliance Pharma will cover the consideration for the acquisition through a fully-underwritten share placing to raise GBP78.5 million and with GBP54.2 million to be drawn down through new loans. The placing will comprise the issue of 191.4 million shares in Alliance Pharma at 41.00 pence per share, a 20% discount to its closing price on Wednesday.
"This acquisition represents a very significant development for Alliance. On completion, Alliance will be a significantly larger business with synergies in existing markets. Having over half of our business outside of the UK, we will have a greater ability to compete for international deals and in-licensing opportunities," said John Dawson, Alliance Pharma's chief executive.
Sinclair IS also announced its results for the year to the end of June on Thursday, with its pretax loss widening to GBP8.2 million from GBP4.4 million, as a rise in revenue to GBP75.9 million was offset by much higher financing expenses.
By Sam Unsted; [email protected]; @SamUAtAlliance
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