Dannex acquires majority stake in Ayrton Drugs Ghana

December 7, 2016

Dannex Limited has acquired majority stake in Ayrton Drugs Manufacturing Limited (Ayrton) via the purchase of “54.47% of the 78.57% voting shares which were held by Adcock Ingram International (PTY) Limited (Adcock) in Ayrton”, according to a statement released by Dannex.

Another statement released by Adcock to confirm the transaction indicated that “upon the completion of this transaction Dannex has become the majority shareholder with 53.47%. Dannex in concert with Adcock hold 78.57% of voting shares of Ayrton.”

Ayrton Drugs has been trading at GHS0.10 per share since late August 2016 to date, which reflects a market capitalization of GHS21.50 million. The company has trailing PE (ttm) of 7.7x and PB of 1.3x.

Dannex has no immediate plans to delist Ayrton from the stock exchange. The company would remain listed on the Ghana Stock Exchange.

Dannex was exempted from a mandatory takeover offer by the Securities and Exchange Commission (Ghana).

This is the second time Dannex has acquired a majority stake in a listed pharmaceutical company in Ghana. The first was the acquisition of a majority stake in Starwin Products Limited (Starwin) in 2014. The company used a rights issue to raise its minority equity of stake of 2.69% to a majority equity stake of 71.33% in Starwin in 2014.

The conclusion of the transaction means that the only two pharmaceutical companies listed on the Ghana Stock Exchange now have a common majority shareholder, Dannex Limited. Source: Doobia