(Alliance News) - Omega Diagnostics Group PLC said on Monday its CD4 manufacturing business has been marketed for sale.
Shares in Omega Diagnostics jumped 9.2% at 3.38 pence on Monday morning in London following the announcement.
Omega said it has selected a preferred bidder to acquire the business and has signed heads of term in relation to the sale.
The preferred bidder has now been granted four weeks in which to complete the remainder of their due diligence, with the transaction is expected to complete shortly thereafter.
The sale will include a significant up-front cash payment and a future royalty stream linked to VISITECT CD4 test sales, Omega explained.
The CD4 Business will be more successful under new ownership, Omega explained, as the new owner has a greater capacity to invest in production capabilities and product development.
Omega said it will now focus solely on its Health & Nutrition business.
"Having withdrawn from the Covid-19 market and disposed of the Alva site earlier this year, the divestment of our loss-making CD4 business will leave the group solely focused on our higher margin Health & Nutrition division. The net proceeds from the sale of the CD4 Business will enable our product and geographical expansion ambitions to be realised," said Chief Executive Jag Grewal.
By Heather Rydings; heatherrydings@alliancenews.com
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