Response to Mandatory Cash Offer

 

TIDMCBF 
 
RNS Number : 4180E 
Cobra Bio-Manufacturing PLC 
21 December 2009 
 

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| For Immediate Release               |                    21 December 2009 | 
+-------------------------------------+-------------------------------------+ 
 
 
Cobra Biomanufacturing Plc ("Cobra" or "the Group" or "the Company") 
 
 
Response to the Mandatory Cash Offer by Recipharm AB ("Recipharm") 
 
 
In response to the announcement issued on 16 December 2009 by Recipharm in 
relation to a mandatory cash offer for the Company at 2.25p per ordinary share 
("the Recipharm Offer"), the Board of Cobra gives the following recommendation. 
 
 
The Independent Cobra Directors, who have been so advised by Seymour Pierce, 
consider the terms of the Offer to be fair and reasonable. In providing its 
advice to the Independent Cobra Directors, Seymour Pierce has taken into account 
the commercial assessments of the Independent Cobra Directors. In addition, the 
Independent Cobra Directors consider the terms of the Offer to be in the best 
interests of Cobra Shareholders as a whole. In reaching their recommendation the 
Independent Directors have taken into account the following factors: 
 
 
  *  trading conditions have remained very challenging with the continued delay in 
  the achievement of contract signatures and as a result the Company did not have 
  sufficient working capital for its current purposes; 
  *  current banking facilities were due to expire on 4 January 2010; 
  *  the inability of the Company to secure any funding from alternative sources 
  other than the Offeror; and 
  *  in the absence of the Recipharm Offer, the Company was not in a position to 
  continue as a going concern and would be required to be placed into 
  administration. 
 
 
 
Accordingly, the Independent Cobra Directors recommend that Cobra Shareholders 
accept the Recipharm Offer once made as they intend to do so in respect of their 
own beneficial holdings. 
 
 
In accordance with the City Code, Recipharm has loaned monies on normal 
commercial terms to Cobra, in order for Cobra to meet its working capital 
requirements during the integration of the Recipharm and Cobra businesses. 
 
 
An offer document will be posted to shareholders on or before 13 January 2010. 
 
 
For further information, please contact: 
 
 
+------------------------------------------------+--------------------------+ 
| Cobra Biomanufacturing Plc                     | Tel: [phone]    | 
|                                                | 181                      | 
+------------------------------------------------+--------------------------+ 
| Danny Chapchal, Chairman                       |                          | 
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| Simon Saxby, Chief Executive                   |                          | 
+------------------------------------------------+--------------------------+ 
| Peter Coleman, Finance Director                |                          | 
+------------------------------------------------+--------------------------+ 
|                                                |                          | 
+------------------------------------------------+--------------------------+ 
| Buchanan Communications                        | Tel: [phone]     | 
|                                                | 5000                     | 
+------------------------------------------------+--------------------------+ 
| Tim Anderson                                   |                          | 
+------------------------------------------------+--------------------------+ 
|                                                |                          | 
+------------------------------------------------+--------------------------+ 
| Seymour Pierce (NOMAD & Broker)                | Tel: [phone] | 
+------------------------------------------------+--------------------------+ 
| Chris Howard                                   |                          | 
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| Christopher Wren                               |                          | 
+------------------------------------------------+--------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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