Biotest AG
Biotest AG: Discussions regarding possible business combination
DGAP-News: Biotest AG / Key word(s): Final Results/Merger PRESS RELEASE Creat has indicated certain key parameters of a potential combination to be implemented through a public tender offer for all common and preference shares of Biotest. The envisaged consideration is EUR 28.50 per ordinary share and EUR 19.00 per preference share of Biotest. Creat has indicated its intentions not only to maintain Biotest’s headquarters and corporate seat in Dreieich, Germany, and maintain Biotest’s corporate name, brand and product names but also to develop the company in line with the current management business plan and to adhere to current shop and collective bargaining agreements and employee co-determination. Such intentions will be agreed upon in a business combination agreement with a term of five years. The Board of Management and Supervisory Board welcome the discussions. A combination with Creat would support the required investments in products and facilities as well as the company’s Biotest Next Level strategy. Negotiations are ongoing and there can be no assurance that a final agreement between the parties will be reached or that any such offer will be made. Any potential transaction is still subject to final negotiations of a business combination agreement and an agreement with Biotest AG’s majority shareholder, OGEL GmbH as well as finalization of due diligence and the required financing measures. In the context of these discussions, Biotest has decided to delay the Annual General Meeting, originally scheduled for 10 May 2017, to a later date. Information regarding the new date will be provided in due course. Financial Results FY 2016 The re-alignment of the Biotest Group characterized the operative development in 2016. Due to the sale of the therapy business and toll manufacturing in the US to ADMA Biologics Inc. (pls refer to press release dated 23.01.2017) the therapy business and toll manufacturing outside the US as well as plasma collection in the US and Europe are Biotest’s core business and are accounted as continuing operation. Sales in this area rose by 3.5 % to EUR 553.1 million versus EUR 534.6 million in the previous year. The business activities, which – in line with the strategic realignment and the contract to sell this business signed in January – will not be continued in future, are reported as Discontinued Operation. In this segment revenues of EUR 57.3 million were recorded in 2016 (2015: EUR 55.0 million). Earnings after tax (EAT) of the Discontinued Operations amounted to EUR -80.2 million. These resulted mainly from operative losses of the US subsidiary, inventory write-offs, and extraordinary one time effects in connection with the sale of the operative business to ADMA Biologics Inc. Operating earnings before interest and taxes (EBIT) increased from Earnings after taxes (EAT) of continuing operations amounted to EUR 34.5 million in the past financial year after EUR 27.0 million in the previous year. The Board of management and the supervisory board will propose to the annual general meeting an increase of the dividend payment of 0.05 EUR per ordinary share and 0.07 EUR per preference share. Guidance 2017: In the 2017 financial year, the Board of Management expects sales of continuing operations to increase by a low-single-digit percentage. Earnings will be influenced by various factors in 2017. Besides the expected effects from the Biotest Next Level expansion project of EUR 60 to 70 million including the associated clinical development and increasing ramp-up costs, the continued tense situation in the crisis regions, especially in the Middle East, could be noticeable. In addition, costs for research and development in the field of monoclonal antibodies of around EUR 10 million will impact earnings in 2017. Due to the above influences, the Board of Management anticipates EBIT of continuing operations in the range of EUR 46 to 48 million. Until the closing of the sale of the therapy business and toll manufacturing in the US to ADMA Biologics Inc., a loss of EUR 9 million is expected for the discontinued operations.
IR contact Ordinary shares: securities’ ID No. 522720; ISIN DE0005227201 Disclaimer
29.03.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Biotest AG |
Landsteinerstraße 5 | |
63303 Dreieich | |
Germany | |
Phone: | 0 61 03 – 8 01-0 |
Fax: | 0 61 03 – 8 01-150 |
E-mail: | investor_relations@biotest.de |
Internet: | http://www.biotest.de |
ISIN: | DE0005227235, DE0005227201 |
WKN: | 522723, 522720 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |