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Disposal of Investment
Blackstar Group SE
Previously Blackstar Group PLC
(Incorporated in Malta)
(Company number SE 4)
(registered as an external company with limited liability in the
Republic of South Africa under registration number
2011/008274/10)
Share code: BCK
ISIN: MT0000620105
(“Blackstar” or the “Company”)
Disposal of Investment
Blackstar is pleased to announce that it has sold 71,608,625
ordinary shares in Litha Healthcare Group Limited (“Litha”) to
Paladin Labs Inc. (“Paladin”) (the “Disposal”). The Disposal,
for a cash consideration of R196,923,719 (approximately £12.6
million), represents the remainder of Blackstar’s interest in
Litha and equates to a selling price of R2.75 per Litha share.
The Disposal proceeds represent an internal rate of return
(“IRR”) of 47% and 3.57 times return on investment in South
African Rand. Blackstar’s total investment in Litha has
generated an IRR of 35% and 4.03 times return on investment in
South African Rand, over the 7 year holding period.
Blackstar was a founding shareholder in Litha (formerly Myriad
Medical) having invested in the business prior to its initial
public offering in October 2006. Blackstar has been actively
involved in Litha and the development of the business, as well
as leading many of Litha’s successful acquisitions and driving
its growth in market capitalization from R100 million to R1.5
billion, with the Litha share price increasing over 3 times
since listing. Litha’s total profit before tax for the year
ending 31 December 2012 was R196,767,000 (approximately £12.6
million).
As announced on 21 February 2012, Blackstar facilitated and
underwrote Litha’s acquisition of 100% of Pharmaplan Proprietary
Limited from Paladin, and in the process sold 50% of its shares
in Litha to Paladin (the “Initial Sale”). Post the Initial Sale,
Blackstar became a minority investor owning 13.4% of the
ordinary share capital of Litha. Blackstar is not a passive
investor and as such decided to sell the remainder of its shares
given it was no longer directly involved in the business. The
proceeds of the Disposal are intended to be applied in
accordance with Blackstar’s investment policy.
Andrew Bonamour, director of Blackstar, commented:
“Litha has been a successful investment for Blackstar. We
developed the business from a R100 million market capitalization
business to its current market capitalization of R1.5 billion,
which was achieved through organic growth and selective value
enhancing acquisitions. During that time we successfully
diversified the business away from being purely a medical
consumables business to a focused biotechnology and
pharmaceuticals business.”
For further information, please contact:
Blackstar Group SE Bryan Moyer +356 2144 6377
Liberum Capital Chris Bowman / +44 (0) 20 3100
Limited Christopher Britton 2222
PSG Capital (Pty) David Tosi +27 (0) 21 887 9602
Limited
3 September 2013
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