029 Group SE

Earnings Release • Mar 2, 2000

News Details

Ad-hoc | 2 March 2000 07:36

Ad hoc-Service: Rhein Biotech N.V. Englisch

Ad hoc-announcement edited and sent by DGAP. The sender is responsible for the content of this announcement. —————————————————————————— Ad hoc-Release Rhein Biotech N. V. WKN: 919 544, Ticker: RBO Major Acquisition for Rhein Biotech Rhein Biotech acquires Asia’s largest vaccine manufacturer to become 3rd global player in Hepatitis-B Neuer Markt Biotech Company to Expand through M&A Maastricht / Seoul, 2 March 2000 – Rhein Biotech N. V., specialist in the production of vaccines and therapeutics, today announces the acquisition of 80% of Green Cross Vaccine Corporation (“GCVC”), a division of Korea Green Cross Corporation (“KGCC”). The transaction will create the world’s third largest vaccine producer in the hepatitis B market. Strategically the transaction will extend Rhein Biotech’s market position in hepatitis B and will also lead to the development of combination vaccines for the prevention of mass diseases such as diphteria, tetanus, whooping cough. These combination vaccines are actively encouraged and recommended by the World Health Organisation. Additionally the agreement enables both parties to provide marketable products plus state of the art production technologies to the global market place. The acquisition broadens Rhein Biotech’s portfolio to include a wide spectrum of vaccines which are already being marketed successfully by KGCC. Terms of the Deal: Rhein Biotech has agreed to acquire GCVC. The total aggregate value of the deal is USD 110 million, part of which is paid through shares. Rhein Biotech has entered into a bridging finance agreement with WestLB and ABN AMRO to fund a proportion of the cash consideration for the transaction and plans to re-finance this via an equity offering later this year. As a result of the share consideration KGCC will own a 20% shareholding (700.000 shares at the closing) in the enlarged Rhein Biotech group, which they intend to hold for the foreseeable future. The transaction and the capital increase necessary for both the share consideration and the equity offering will be put to the shareholders for approval within a month. Commenting on the acquisition, Daan Ellens, Chief Executive of Rhein Biotech said: “This positions Rhein Biotech as one of the top world-wide players in the vaccine market. We are confident that we have made the right choice of partner and are now in a strong position to realise our ambitious strategy of becoming one of Europe’s top 5 leading biotechnology companies. ” Dr. Eung Joon Jo, Executive Vice President of KGCC, added: ” The new company will be positioned as a world class vaccine producer with strong R&D capability. This co-operation will be a clear commitment from KGCC in Europe ‘s fast growing biotechnology industry ” Rhein Biotech: Rhein develops, produces and markets active substances for the prevention and treatment of mass diseases. Rhein Biotech’s key asset is a broad portfolio of technologies for the highly efficient production of recombinant proteins for use as active ingredients for vaccines and therapeutics. Rhein Biotech’s technology has been proven through several technology licence agreements including one with Aventis Pasteur, the world’s largest vaccine manufacturer. Rhein Biotech’s strategic aim is, through internal growth and selective acquisitions, to become one of the top five players in the European biotech sector. Green Cross Vaccine Corporation: A division of Korea Green Cross Corporation which is a fully integrated, profitable pharma company based in Seoul. KGCC is listed on the Korean Stock Exchange (Reuters-Code 05250.KS) and operates world-wide in the area of vaccines, plasma fractions, diagnostics and therapeutics. GCVC produces and markets a broad portfolio of vaccines against viral infections (e.g. hepatitis B, haemorraghic fever, chicken pox, rotavirus) and bacterial infections (e.g. diphtheria, tetanus, whooping cough). In addition to this GCVC has access to other vaccines, for example influenza and Japanese Encephalitis. GCVC upholds its world-wide market position with a well-equipped international distribution organisation and has around 40% market share in Korea. The business employs approximately 150 people. For the year ended 31 December 1999, the vaccine business of KGCC had a turnover of 54 million Euro, a profit before tax of 18 million Euro and an EBITDA of 25 million Euro. A proven relationship: Rhein Biotech and KGCC have been working together since 1993, when KGCC acquired a license from Rhein Biotech to produce the hepatitis B vaccine. Since then the vaccine has been registered in 31 countries and has been recommended by the WHO to all UN agencies. GCVC therefore belongs to the small number of “UN pre-qualified suppliers”. More detailed information on the acquisition is available in a press release which can be found at www.rheinbiotech.com or via the contacts named below. For further information, please contact: Frank Ubags, CFO Rhein Biotech N.V., Maastricht (NL) T:+31 (0)43/3 56 78 90 F:+31 (0)43/3 56 78 99 I: http://www. rheinbiotech.com e: investor@rheinbiotech.com Dr. Eung Joon Jo, Executive Vice President Korea Green Cross, Seoul (Korea) T:+82-3 31-260-9706 F:+82-3 31-260-9410 e: ejjo@greencross.com I: http://www.greencross.com Stephanie Krone, German PR vom Hoff Kommunikation GmbH, Düsseldorf (D) T:+49(0)211 / 515 805-16 F:+49(0)211 / 515 805-55 e: s.krone@vomhoff.de Nicola How – European PR Buchanan Communications (UK) T: +44 (0) 207 466 5000 F: +44 (0) 207 466 5001 E: nicolah@buchanan.uk.com End of Message