AIP - Adcock Ingram Holdings Limited - Update on the call option process
AIP
AIP
AIP - Adcock Ingram Holdings Limited - Update on the call option process
initiated by Baxter Healthcare SA and further renewal of cautionary announcement
Adcock Ingram Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 2007/016236/06
Share code: AIP
ISIN: ZAE000123436
("Adcock Ingram" or "the Company")
Update on the call option process initiated by Baxter Healthcare SA ("Baxter")
in respect of Adcock Ingram Critical Care (Pty) Limited ("AICC") and further
renewal of cautionary announcement
Reference is made to the various announcements released by the Company on SENS,
the latest being 2 August 2010, relating to the call option process initiated by
Baxter in terms of the agreement between, inter alia, Baxter, Adcock Ingram and
AICC dated 17 July 2008 ("the Option Agreement").
A dispute has arisen between Baxter and Adcock Ingram as to what the price is at
which Baxter may exercise the call option in the Option Agreement ("Call
Option"), having regard to the written report dated 12 July 2010 prepared by
KPMG Services (Proprietary) Limited.
Shareholders are advised that the parties to the Option Agreement have agreed to
submit the dispute to arbitration. The arbitration is due to be heard in
February 2011.
The Option Agreement has been amended such that, inter alia, Baxter will be
entitled to exercise the Call Option within a period of three weeks following
the earlier of the date on which (1) Adcock Ingram and Baxter agree in writing
on the "Fair Market Value Determination" (as that term is defined in the Option
Agreement) in respect of the shares in AICC which are the subject of the Call
Option (2) and the arbitrators give their written award in the arbitration.
Accordingly, shareholders are advised to continue exercising caution when
dealing in Adcock Ingram securities until a further announcement is made.
Midrand
14 September 2010
Financial adviser and Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 14/09/2010 09:00:01 Produced by the JSE SENS Department.
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