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Canadian firm to buy stake in Litha

Feb 22 2012 07:30 Reuters

Company Data

Litha Healthcare Group L [JSE : LHG]

Last traded R3.64
Change R-0.11
% Change -2.93%
Cumulative volume 1.26m
Market cap R1.36bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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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.

 
 
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