PlasmaSelect AG / Miscellaneous
27.01.2009
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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On September 7, 2007, DeltaSelect GmbH, a wholly-owned subsidiary of
PlasmaSelect AG, sold its generics division to the Icelandic Actavis Group.
Part of the total purchase price of more than 70 million was to be paid
in the form of a staged earn-out due in 2009 and only if the Actavis Group
achieved certain performance criteria in the year 2008 with the acquired
generics business.
In view of the global financial crisis and based on actual information by
Actavis, the Board of Directors of PlasmaSelect AG today decided to
recognize a precautionary 100% impairment of the earn-out receivable in the
2008 annual financial statements. The impairment causes the IFRS result to
drop by T- 17,627.00.
The Board of Directors of PlasmaSelect has been negotiating the
postponement of the fulfillment of the earn-out conditions into the 2009
fiscal year. In the course of the negotiations, information about the
imminent sale of the entire Actavis Group was confirmed by a company
representative. As the large Icelandic bank that is acting as guarantor for
the earn-out receivable is experiencing financial problems due to the
financial crisis, the Board of Directors has requested a statement
regarding the continued existence of the guarantee and a detailed
explanation about the fulfillment of the performance criteria. Today, the
Board notified the answer by Actavis that an extension of the guarantee is
not possible due to the financial crisis in Iceland. In terms of
performance criteria, the response was also completely unsatisfactory.
Already previous inquiries of the seller received unsatisfactory replies.
In spite of all vagueness stemming from this information policy, it had
already become evident, that achieving the performance criteria was in
jeopardy. This led to the negotiations described above, where Actavis
acknowledged that mistakes had been made in aiming the performance
criteria.
First of all, Delta Select GmbH will demand a comprehensive explanation
from Actavis and then seek to come to an agreement, with the Board
considering all options.
Against this background, the Board decided to err on the side of caution
and to recognize the 100% impairment of the earn-out receivable.
DGAP 27.01.2009
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Language: English
Issuer: PlasmaSelect AG
Pettenkoferstraße 22
80336 München
Deutschland
Phone: +49 (0)89 810 29-0
Fax: +49 (0)89 810 29-111
E-mail: info@plasmaselect.de
Internet: www.plasmaselect.de
ISIN: DE0005471809
WKN: 547180
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-Adhoc: PlasmaSelect AG recognizes impairment of earn-out in the amount of TEUR 17.627,00 from sale of generics segment
| Source: EQS Group AG