Elder Pharmaceuticals to buy UK’s NeutraHealth for Rs70.60 crore
17 Sep 2010
Elder Pharmaceuticals yesterday said that it has proposed to buy NeutraHealth, a UK-based supplier of vitamins and supplements, for £9.80 million (Rs70.60 crore) in cash.
AIM-listed NeutraHealth focuses on the vitamin, mineral and supplements sector in the UK and Europe.
The Neutrahealth Group has made several acquisitions after listing in AIM in 2005 and has two major operating divisions, the BioCare division formed by the acquisition of BioCare Limited in August 2005 and Brunel formed through acquisitions in January 2007 and June 2008.
The company posted revenues of £34.6 million pounds for the year ended 31 March 2010.
Under deal, Neutrahealth shareholders will receive 6.5 pence in cash per share, valuing Neutrahealth at approximately £12.19 million, a premium of 20.9 per cent to Neutrahealth closing price of 5.38 pence on 15 September 2010.
Elder already holds 21.1 per cent of Neutrahealth and is entitled to vote on the Special Resolution at the general meeting, which it intends to vote in favour of such resolution.