Disposal

RNS Number : 2037I

Camellia PLC

08 March 2010

 



8 March 2010

Camellia Plc

Disposal

Further to its announcement of 5 March 2010, Camellia Plc ("Camellia") confirms that agreements have now been entered into for the sale of 903,680 shares in Siegfried Holding AG ("Siegfried"), a listed Swiss pharmaceuticals company, representing Camellia's entire 32.3% interest in Siegfried's issued share capital. The agreements are with the following counterparties: Rainer-Marc Frey, SE Swiss Equities AG, Herbert Item, BIH SA and Sigamed AG, a wholly owned subsidiary of Siegfried.

The shares are being sold for a total cash consideration of CHF79.57 million (or £49 million at the current exchange rate) payable on completion and the share sale agreements are conditional, inter alia, on Siegfried's proposed capital raising being approved by its shareholders at its forthcoming AGM, which is scheduled to take place on 14 April 2010.

It is the intention of the Board of Camellia to use the proceeds of the sale for the repayment of debt, the injection of further development capital into existing subsidiary companies and other general corporate purposes.

Based on Siegfried's audited annual results for the year ended 31 December 2009, as announced on 5 March 2010, Camellia's share of Siegfried's loss for the year was £6.8 million and its share of Siegfried's gross assets and net assets at year end was £92.2 million and £63.3 million respectively. On completion, this disposal is expected to result in a small profit on sale being recognised by Camellia in the current financial year.

Enquiries:

Malcolm Perkins, Chairman

Camellia Plc

Tel: [phone]

 

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