TBS
TIIH
TBS - Tiger Brands - Tiger Brands Completes Strategic Review Of Its Healthcare
Interests And Cautionary Announcement
TIGER BRANDS LIMITED
("Tiger Brands" or "the Company")
(Incorporated in the Republic of South Africa)(Registration number
1944/017881/06)Share code: TBSISIN: ZAE000071080
TIGER BRANDS COMPLETES STRATEGIC REVIEW OF ITS HEALTHCARE INTERESTS AND
CAUTIONARY ANNOUNCEMENT
The Board of Tiger Brands (the "Board") has completed a strategic review of the
Company`s healthcare interests, which operate under the name of Adcock Ingram.
Following the review, the Board has come to the conclusion that the Company will
be best positioned to maximise shareholder value by focusing on its core FMCG
operations. Consequently, the Board has taken an in-principle decision to exit
the Company`s healthcare interests.
The healthcare businesses to be divested of are the Pharmaceutical and Hospital
Products interests of wholly-owned subsidiary company Adcock Ingram Holdings
(Pty) Limited (together "Adcock Ingram"). Tiger Brands will retain the Consumer
Healthcare (personal care, babycare and homecare) business due to its strong
FMCG focus. In addition, Tiger Brands will consider retaining certain brands
that are currently marketed and sold through the consumer well-being division of
Adcock Ingram. These brands, which have a turnover of approximately R340
million, are primarily sold through the FMCG channel.
Adcock Ingram has a strong track record of profitable growth, with turnover and
operating income growing at a compound average growth rate of 16% and 17% per
annum respectively over the past 3 years (2003 to 2006). Although Adcock Ingram
is well positioned for continued growth, the Board recognises that the
characteristics and growth prospects of a healthcare business differ from those
of a focused FMCG company. Consequently, the Board believes that shareholder
interests would be best served through a separation of the two businesses.
The Board has mandated UBS South Africa (Pty) Ltd to evaluate all options with
regards to the separation of the Company`s healthcare interests, which include a
potential sale, or unbundling and separate listing of the Pharmaceutical and
Hospital Products businesses, either individually or on a combined basis.
Shareholders are advised to exercise caution in their dealings in the Company`s
securities until such time as a further announcement is made. Further
announcements, as appropriate, will be made in due course.
Sandton
20 April 2007
Financial advisor and transaction sponsor
UBS South Africa (Pty) Ltd
SponsorJ.P. Morgan Equities Limited
Date: 20/04/2007 15:28:31 Produced by the JSE SENS Department.
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