Disposal of Chinese rights to Forceval

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™

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 £2.9 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™ in China, the product's largest market.

The consideration of £2.9 million for the Unigreg shareholding is being settled in cash with an initial payment of £2.4 million at completion and a deferred payment of £0.5 million due on or before 16 April 2019. In addition, all outstanding shareholder loans made by the Group to Unigreg, totalling £1.5 million, will be repaid in full prior to, and as a condition of, completion. These initial cash receipts, totalling £3.9m, 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 £1.2 million, representing an initial investment of £0.5 million, made in 2007, together with its share of unremitted profits of £0.7 million. The profit on disposal, approximately £1.5 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 £0.2 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                                                                                              [phone]

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.

 

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