Healthcare Enterprise Group PLC (“HCEG” or the “Group”) announces a successful EGM today. All resolutions proposed were passed and shareholder approval was received in relation to the £11.9 million acquisitions of Safa Group, IPS and 60.7% of SafaTec, announced on 20 October 2003 and their associated transactions. All of the Ordinary Shares available for issue under the Placing were successfully placed and a total of £10,500,000 was raised (before expenses).
Application has been made for the Enlarged Share Capital and Warrants (excluding the Prestbury Warrants) to be admitted to trading on AIM and dealings are expected to commence tomorrow, 14 November 2003. The Acquisitions will formally complete at the time of Admission.
Upon Admission, there will be 2,721,076,836 Ordinary Shares and 302,107,684 Warrants in issue (of which the 30,000,000 Prestbury Warrants will not be admitted to dealing on AIM).
Gordon Wood, the Managing Director of Safa Group, will be appointed as Chief Executive Officer of HCEG Europe Limited following Admission and will join the main Board of HCEG.
Stuart Bruck, Chairman, commented:
“These first acquisitions establish a platform for HCEG in the occupational healthcare and medical products supply markets. They provide the Group with an engine for cash generation with significant opportunities for expansion through the consolidation of the fragmented occupational healthcare and medical supply markets in the UK and Europe.”
“We have received strong investor support for this strategic move, resulting in healthy demand for Ordinary Shares in the Placing. This encouraged us to offer Ordinary Shares worth up to a further £500,000 all of which have been successfully placed.”
13 November 2003
Enquiries:
Healthcare Enterprise Group PLC
Tel: 020 7659 6158
Stuart Bruck, Executive Chairman
Lyndon Gaborit, Finance Director
College Hill
Tel: 020 7457 2020
Nicholas Nelson
Corinna Dorward
Notes:
Words and expressions defined in the prospectus published by HCEG on 20th October 2003 have the same meanings when used in this announcement unless the context otherwise requires.
HCEG announced acquisitions worth £11.9 million on 20 October 2003.
The activities of the businesses acquired; Safa Group, IPS and SafaTec are as follows:
Safa Group and IPS are suppliers of occupational healthcare and first aid products and services to large, established companies and first aid professionals in the UK and internationally. The provision of first aid equipment required by UK health and safety legislation underpins the businesses. Customers include British Airways, BT, Marks & Spencer, Sainsbury and OGC Buying Solutions (a UK government supplies procurement agency).
Safa and IPS also supply a wide variety of disposable and consumable medical and pharmaceutical supplies to the larger medical, veterinary and retail markets. They use advanced replenishment systems to ensure that clients maintain adequate supplies to remain compliant with UK health and safety legislation.
SafaTec UK holds interests in a number of innovative healthcare products and technologies, which provide HCEG with significant commercialisation opportunities. For example, Safa Group has secured a sole international distribution agreement with Ebiox Limited (“Ebiox”), a manufacturer of a unique decontaminant and cleansing product range based on a patented formula. SafaTec UK has a 35% interest in Ebiox and HCEG is negotiating to acquire a controlling interest for the Enlarged Group. In addition, SafaTec UK has a stake in Optiscope Technologies Ltd which develops technologically advanced optical viewing tubes for reusable and disposable endoscopes. The design uses new technology, which is expected significantly to reduce the cost of manufacturing endoscopes without impairing their performance.
