MONTREAL, CANADA--(Marketwired - Sep 3, 2013) - Paladin Labs Inc. (PLB.TO) ("Paladin") today announced that it has acquired a block of 71,608,625 shares in Litha Healthcare Group Limited (JSE:LHG) ("Litha") from the Blackstar Group SE and related entities ("Blackstar") at a price of ZAR 2.75 per share. The transaction was executed on the Johannesburg Stock Exchange on August 27, 2013 and settled on September 3, 2013. The total consideration paid by Paladin was ZAR 196,926,719 or approximately CAD$ 20.1 million at current exchange rates.
With this transaction Paladin has further strengthened its position as Litha's largest shareholder, now owning a total of 313,688,612 shares in Litha which represents a 57.7% ownership interest. The purchase stems from a pre-emptive right that Paladin held in its original agreement with Blackstar, negotiated at the time of the Pharmaplan-Litha merger in February 2012. In concert with the transaction, Paladin and Blackstar also terminated their voting pool agreement as the purchase by Paladin represents an acquisition of over 98% of Blackstar's total shares in Litha.
"This purchase signals Paladin's continued confidence and commitment to its international expansion strategy and our Litha affiliate in South Africa," said Mark Beaudet, interim President and Chief Executive Officer of Paladin Labs Inc. "We look forward to continuing our work with Litha's management and board of directors to grow the business in the Sub-Saharan African healthcare market. As part of this growth strategy, we remain committed towards driving further efficiency and scale, and to Litha's broad based black economic empowerment (BBBEE) strategy."
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.
About Litha Healthcare Group Limited
Litha Healthcare Group Limited is a Johannesburg Stock Exchange-listed, integrated healthcare company with a varied product offering in: biotechnology, vaccines, pharmaceuticals, medical devices and consumables and cold chain logistics, with extensive contracts in both the public and private healthcare sector. More information is available at: www.lithahealthcare.co.za
This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2012. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com.