[ 2016-08-26 ]

Dannex to acquire Ayrton Drugs
Local pharmaceutical giant, Dannex, has initiated
moves to acquire Ayrton Drugs.

Dannex plans to acquire 53.47 percent stake of the
drug manufacturing firm, the move is however
subject to regulatory approval.

“The sale of shares agreement is subject to a
number of conditions precedent, including, inter
alia, an exemption from undertaking a Mandatory
Takeover Offer under the Securities and Exchange
Commission (SEC) Code on Takeovers and Mergers.
The mode of payment for the shares will be
cash,” Dannex said in a statement dated 26th
August, 2016.

Ayrton which is currently listed on the Ghana
Stock Exchange will still be on the bourse after
the acquisition is completed.

“Dannex intends to maintain Ayrton on the Ghana
Stock Exchange as a listed company.”

The statement added, “Upon the completion of the
transaction, Dannex will become the majority
shareholder with 53.47%. Dannex has at the date of
this announcement, made an application to the SEC
for an exemption from undertaking a Mandatory
Takeover Offer. In the event that a waiver is not
granted, Dannex would, prior to the approval of
the SEC, make a mandatory offer to other
shareholders of Ayrton to purchase their shares
pursuant to the Code on Takeovers & Mergers.”

This is the second major acquisition Dannex will
be embarking on.

The company last year acquired another local
pharmaceutical company, Starwin as part of its
medium to long term plans of becoming one of
Africa’s biggest pharmaceutical companies.

Dannex, was established in 1964 expressly for the
purpose of manufacturing and distribution of
pharmaceutical products.

Apart from Ghana, Dannex has sales experience in
other West African countries and competency in the
production of tablets, capsules, liquids (syrups
and suspensions), ointments and other
Over-The-Counter (OTC) medicines for a variety of
diseases and conditions.

Adcock Ingram International (PTY) Limited
(“Adcock”) is a shareholder of Ayrton Drug
Manufacturing Limited (“Ayrton”) with 78.57%
voting shares.

While Dannex has Equatorial Cross Acquisitions,
Yaw Opare-Asamoah and Social Security and National
Insurance Trust (SSNIT) as some of its major
shareholders.

Yaw Opare-Asamoah currently runs Dannex.

UMB Stockbrokers Limited is to act as transaction
advisors to Dannex for the deal while Kimathy&
Partners will act as legal advisors.

Source - citibsinessnews.com

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