Dannex agrees to buy majority stake in Ayrton drugs

Dannex has entered into an agreement with Adcock Ingram, a South African pharmaceutical firm, to acquire a majority stake in Ayrton Drug.

The agreement will see Dannex take 53.47 percent shares of Adcock Ingram's interest in Ayrton drugs.

This is, however, subject to 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.
After the acquisition, Dannex, acting in concert with Adcock would hold 78.57 percent of the voting shares of Ayrton.

Adcock Ingram International currently has about 78.57 percent in Ayrton Drug and upon the completion of the transaction, Dannex will become the majority shareholder with 53.47 percent.

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.

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

Ayrton Drug Manufacturing Limited is a Ghanaian pharmaceutical company established in 1965 and is listed on the Ghana Stock Exchange.

Major shareholders of Ayrton include Adcock Ingram International (PTY) Limited and Social Security and National Insurance Trust (SSNIT).

Dannex Limited is an indigenous Ghanaian-owned pharmaceutical company established in 1964 expressly for the purpose of manufacturing and distribution of pharmaceutical products.

Dannex has a market share in Ghana, with 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.

Major shareholders of Dannex include Equatorial Cross Acquisitions, Yaw Opare-Asamoah and Social Security and National Insurance Trust (SSNIT).

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