ENGI.L Regulatory News (ENGI)

21 Jul 2005 10:21

Billam PLC21 July 2005 Billam Plc Unquoted investee announces it is being acquired by quoted company The directors of Billam Plc ("Billam") are pleased to report that investeecompany Arakis Limited ("Arakis") announced that it has agreed terms to beacquired for £106.5 million by Sosei Co Ltd ("Sosei" - 4565, Tokyo StockExchange MOTHERS index), a leading Japanese biopharmaceutical company withoperations in Japan and the UK. The combined group will have a broad mid tolate-stage clinical and pre-clinical pipeline, products with near term revenuegeneration potential, complementary product discovery capabilities and strengthsin Europe and Asia. The offer contemplates the acquisition of 100% of the issued and to be issuedshare capital of Arakis for a consideration of £106.5 million comprising £11.7million in cash and 35,630 new Sosei shares. The offer will be open foracceptance for a period of 21 days. Upon all relevant conditions beingsatisfied, completion of the transaction will take place on 30 August 2005. Billam acquired its shareholding in Arakis in March 2004 when Arakis boughtBillam investee company, Sirus Pharmaceutical Limited. The Arakis shareholdingis valued in Billam's accounts at £164,000. It is currently unclear exactly whatproportion of the total consideration payable for Arakis will be receivable byBillam. This is because Billam is entitled to receive further deferredconsideration in respect of its sale of Sirus and it expects that this will beestablished by the end of August. A further announcement will be made when fulldetails of the transaction are available and value of Billam's holding known.The Board of Billam currently believes that the minimum receivable considerationby Billam will be in the region of £500,000. Angus Forrest, CEO of Billam said "This transaction is a further indication ofthe value perceived by third parties in Billam's investee companies. Also itdemonstrates that a significant uplift in value can be generated over relativelya short period by a well run company exploiting technology. For further details: Angus Forrest, Billam Plc 020 7336 1300 Maxine Barnes, Bishopsgate Communications 020 7430 1600 This information is provided by RNS The company news service from the London Stock Exchange