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PROGRESS OF ANHEAL ACQUISITION
Highlights:
• Acquisition consideration to include possible equity swap at same valuation
terms
• Valuation to be pegged to profit guarantee from Anheal
• Anheal to seek and obtain the necessary approvals
20 February 2008: Australian-listed Singapore-based diagnostics group Rockeby biomed Ltd (ASX: RBY) is pleased to report the status of its impending acquisition of
Beijing Anheal Laboratories Co., Ltd (“Anheal”).
The acquisition of a 40% interest in Anheal was first announced in November 2006. The transaction has taken longer than expected as Anheal, a Chinese government-linked
company, was required to undergo a national audit which was successfully completed in October 2007. Additionally, Rockeby’s management has been negotiating for improved
terms and conditions with Anheal’s shareholders. We are pleased to inform that Rockeby’s management has made considerable progress in this respect.
Both companies are currently evaluating an all-cash or a combination of cash and equity arrangement based on the purchase consideration of RMB37.5 million previously
negotiated. The total purchase consideration will be pegged to a profit guarantee provided by Anheal’s shareholders.
As the transaction involves a State-linked asset, the directors and shareholders of Anheal are required to take the necessary steps including obtaining certain documentations before seeking the approvals of the Ministry of Agriculture. Anheal is in the process of
appointing financial advisor to help expedite this process.
About Anheal Located in Zhongguancun Science Park of Beijing, China, Anheal is engaged in animal
health reagent / product research, development and marketing. It has been issued the Certificate of High-tech Enterprise by the Beijing Science and Technique Committee
because of its advanced technology, well-equipped laboratories, highly qualified senior scientists and technologists specialising in animal diseases, cytology, molecular biology and bioengineering, etc.. Anheal is also the exclusive agent in China for IDEXX Laboratories Co. Ltd (USA) and Laboratorios HIPRA, S A (Spain).
Anheal is profitable in its own right, generating revenue of approximately RMB 50 million (US$6.94 million), Net Profit After Tax (NPAT) of RMB 10 million (US$1.38
million) and Net Tangible Asset (NTA) of RMB 22.43 million (US$3.11 million) in FY2006. In FY2005, Anheal generated revenues of RMB 33.69 million (US$4.68 million), NPAT of RMB 5.91 million (US$0.82 million), and a NTA of RMB 18.58
million (US$2.58 million). Management believes that Anheal will provide Rockeby with direct access to China – the
world’s largest poultry market – for its Avian Influenza Virus diagnostic test.