| Fri 12 Jun 2009, 16:35 | | APN - Aspen Pharmacare Holdings - Official Statement Regarding the Alleged |
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APN
APN
APN - Aspen Pharmacare Holdings - Official Statement Regarding the Alleged
Purchase Transactions Entered into Between Aspen and Frankel Chemicals for
the Purchase by Aspen from Frankel Chemicals of Raw Materials for the
Manufacture of Anti-Retrovials
ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1985/0002935/06
Share code: APN
ISIN: ZAE000066692
OFFICIAL STATEMENT REGARDING THE ALLEGED PURCHASE TRANSACTIONS ENTERED INTO
BETWEEN ASPEN AND FRANKEL CHEMICALS FOR THE PURCHASE BY ASPEN FROM FRANKEL
CHEMICALS OF RAW MATERIALS FOR THE MANUFACTURE OF ANTI-RETROVIALS
ASPEN PHARMACARE HOLDINGS LIMITED AND ITS AFFILIATES ("Aspen") AND FRANKEL
CHEMICALS ("Frankel")
It has come to the attention of Aspen that information allegedly pertaining to
the business relationship between Frankel and Aspen has been provided to the
international investment community and the general public. Aspen hereby wishes
to clarify that the alleged purchases and related amounts owing are invalid and
have arisen as a result of the falsification of documents.
The allegations are currently sub-judicae. Aspen will co-operate, without
restriction, with all statutory investigating authorities and comply with all
legal requirements relating to this matter.
Frankel have alleged that:
(i) "Over the past five years, Frankel Chemicals has been awarded the contract
to procure Anti-Retroviral ("ARV") ingredients for Aspen Pharmaceuticals Ltd in
South Africa to combat the spread of HIV/AIDS. The contract was awarded based on
the good merits and relations Frankel has with this customer"*
(ii) Aspen is indebted to Frankel in the amount of R700 million;
(iii) Mr Stephen Saad, the Chief Executive Officer of Aspen, has verbally
confirmed "payment terms" with Frankel for the payment of the aforesaid sum of
R700 million.
Aspen hereby confirms the following facts:
(i) Aspen currently purchases selected raw materials directly from Frankel;
(ii) whilst Frankel is listed as an agent of Aspen for the supply of certain
other chemicals, Aspen deals directly with the suppliers thereof on a direct
indent basis;
(iii) Aspen has transacted with Frankel and Frankel International, but has not
undertaken business with any of the following entities (which purportedly form
part of the Frankel Group), namely:
- Eurochemicals Pty Ltd
- Frankel SA
- Frankel Enterprises
- Frankel Asset Management
- Abated Investments; and
- Bartan Group (Australia).
(iv) As at the date of this letter there are no monies due to or owing to
Frankel or payable by Aspen to Frankel, or any of its affiliates, for the
alleged purchases of ARV materials.
(v) Aspen purchases all of its Active Pharmaceutical Ingredients, which are used
for the manufacture of ARV products, from other third party suppliers.
(vi) Aspen is aware of the existence of documents representing to be purchase
orders and other correspondence between Aspen and Frankel which were neither
prepared nor authorized by Aspen. These documents have been fraudulently
prepared using forged purchase order templates and forged signatures,
representing Aspen personnel.
Should you have specific queries on this matter, please contact Mr. Pieter van
der Sandt, Legal Counsel for Aspen on (011) 239 6522.
Issued by:
Roshni Gajjar, Investor Relations Manager, (031) 580 8649
On Behalf of:
Stephen Saad: Group Chief Executive; and
Gus Attridge: Deputy Group Chief Executive
12 JUNE 2009
Sponsor: Investec Bank Limited
Date: 12/06/2009 16:35:02 Produced by the JSE SENS Department.
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