| Tue 31 Aug 2004, 11:18 | | Media Release |
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Alliance/Forim - Media Release
ALLIANCE PHARMACEUTICALS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1981/006145/06)
Share code ALN ISIN: ZAE000011110
Share code ACN ISIN: ZAE000011847
(`Alliance`)
FORIM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004111/06)
Share Code: FOM
ISIN: ZAE000002689
(`Forim`)
MEDIA RELEASE
THEBE TRANSFORMS ALLIANCE PHARMACEUTICALS INTO THE LARGEST BLACK EMPOWERED
HEALTHCARE COMPANY IN SOUTH AFRICA
Tuesday, 31 August 2004
Thebe Health Care (Pty) Ltd, (`Thebe Health`), a group company of Thebe
Investment Corporation, the oldest black economic empowerment (BEE) company in
South Africa, announced late on Friday 27 August 2004, the offer to acquire
shares not already owned in Alliance Pharmaceuticals Limited (`Alliance`) and
its holding company, Forim Holdings Limited (`Forim`).
Through the proposed transaction Alliance will become the largest majority black
owned and controlled healthcare company in South Africa
Alliance`s current principal activities are the manufacture, marketing and
distribution of generic pharmaceuticals, medical and surgical disposables and
consumer personal care products. The group`s operations include its own
manufacturing facilities as well as a warehousing and distribution
infrastructure.
Thebe Health has been a significant shareholder in Alliance and Forim for the
past two and a half years. Both Yaseen Bhayat, CEO of Thebe Health, and
international healthcare and pharmaceutical industry specialist, Ian Black, non-
executive director of Thebe Health, have served on the Alliance and Forim Boards
during this period. Bhayat will assume the position as interim chief operating
officer of Alliance to oversee the implementation of the transaction. Ian Black,
who is also chairman of CareCross Health, will continue to bring his wealth of
experience and strategic knowledge to the partnership.
Bhayat said `we have been operationally involved with Alliance and understand
the challenges and its potential. Enormous synergies exist between Alliance and
our other healthcare investments and this transaction is part of our strategy to
create a significant BEE healthcare business to address one of the country`s
most pressing social challenges, namely cost effective healthcare delivery.`
Vusi Khanyile, Chairman of Thebe Health added: we are very excited about the
growth opportunities that exist for a pharmaceuticals company with the
empowerment credentials of Thebe behind it, specifically in the light of the
formulation of a BEE charter for the multibillion rand healthcare industry`.
In terms of the transaction, which is subject to regulatory and final
shareholder approval, Thebe will acquire the 74% of the shares in Forim that it
does not currently own for 68 cents per share. In addition, Thebe will buy out
the remaining minorities in Alliance for 40 cents per share. The above amounts
are post the capital distribution of 34 cents per Forim share and 32 cents per
Alliance share. Thebe Health has irrevocable commitments from the majority of
Forim`s shareholders. Alliance is currently 60% held by Forim. The deal is based
on a valuation of R80 million for Alliance and its listed holding company,
Forim.
The outgoing chief executive officer of Alliance, Meyer Gelbart, who will stay
on as a consultant said: `Thebe has been our partner since 2002 and we see the
strengthening of their shareholding in Alliance as strategically important to
the long-term sustainability of the business.`
As part of the Thebe Healthcare group, Alliance will benefit from improved
economies of scale and synergies as well as the access to the group`s network
and significant intellectual capital. Other companies within the Thebe
Healthcare group include Thebe Pharmaceuticals, Aquila Healthcare and Vuna
Healthcare Logistics.
For the financial year ended 28 February 2004, Alliance reported a 9% increase
in turnover to R230,0 million and a 107% increase in operating profit to R17,9
million. Net profit increased 82% to R10,1 million.
- ENDS -
For further information please contact:
Yaseen Bhayat
Thebe Health Care
Tel: 011 447 7800
Cell: 082 451 2321
Meyer Gelbart
Alliance Pharmaceuticals
Tel: 011 334 3600
Jessica Yellin
Magna Carta
Tel: 011 784 2598
Cell: 083 325 1199
