• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

Canadian firm to buy stake in Litha

Feb 22 2012 07:30
PALADIN Labs said on Tuesday  it plans to buy a near 45% stake in South Africa’s Litha Healthcare Group [JSE:LHG] in a complex deal to expand its footprint in the region.

The deal will see Paladin speed up its buyout of the near 55% of Pharmaplan it does not currently own. It will then sell the business to Litha in a cash-and-stock deal.

Pharmaplan provides marketing and sales services for small to mid-sized drug makers in South Africa and other sub-Saharan territories.

Litha will issue 169.1 million shares at R2.75 apiece to buy Pharmaplan, but Paladin did not specify the cash part of the deal. Paladin also agreed to buy an additional 73 million Litha shares from Blackstar Group at the same price.

Paladin said it expects to spend C$48m in cash and issue 88 948 shares at C$44.97 each to complete the combined transactions, which will make it Litha’s single largest shareholder.

The deal is expected to be accretive to Paladin’s earnings before interest, taxes, depreciation, and amortisation immediately upon closing, the Canadian company said in a statement.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote