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Aspen signs R10 billion deal with MSD

Oss, Netherlands - JSE Limited listed Aspen Holdings is pleased to announce that the Aspen Group (“Aspen”), the ninth largest generic pharmaceutical company in the world, has: signed an agreement with MSD (known as Merck in the United States and Canada) for the acquisition of an active pharmaceutical ingredient (“API”) manufacturing business which manufactures for MSD and the market generally and which is located in the Netherlands with a satellite facility and sales office in the US (“the API Business”); and reached an agreement on an option to acquire a portfolio of 11 branded finished dose form molecules (“the Products”) from MSD, covering a diverse range of therapeutic areas and including products that use APIs manufactured by the API Business. (Collectively “the Transaction”) Stephen Saad, Aspen Group Chief Executive, said “One of Aspen’s primary strategic intents is to further globalise its business, increase its representation across a number of additional territories and provide support to its growing global presence with a differentiated pipeline. This Transaction provides a platform to contribute to the achievement of this strategic intent by enabling Aspen to access a niche range of APIs and finished dosage products.” The Transaction, which is subject to conditions precedent, is valued at approximately US$1 billion (ZAR10.06 billion at ZAR10.06/US$) and comprises the following elements: In respect of the API business: Aspen Holdings will acquire the shares of a new Dutch company (“Dutch Newco”) containing the API Business for a consideration of approximately €36 million (ZAR472 million at ZAR13.11/€); and Dutch Newco will simultaneously acquire inventory with an expected value of approximately €300 million (ZAR3.9 billion at ZAR13.11/€). In respect of the Products: Aspen Global Incorporated, a wholly owned subsidiary of Aspen Holdings, has the option to acquire the Products by way of the exercise of a call option with a resulting asset purchase for a consideration of US$600 million. The effective date of the API Business acquisition is expected to be 1 October 2013 while the expected effective date of the Products acquisition through the exercise of the option is 31 December 2013. http://www.aspenpharma.com/default.aspx?pid=7&stepid=2565&oid=564&ctl00_ContentPlaceHolder1_ctrlMainPortletContainer=itemid*397031$stepid*2565$iddef*828$idlangver*827$idlayout*827$idmode*2471$languageid*1$previousitemid*397031$ignoreloadedcontrols*True&parentid=0 Project Name Aspen signs R10 billion(US $1 Billion) deal with MSD Location Netherlands Commence 2013 Completion -NA- Estimated Investment US $ 1 Billion Capacity -NA- Key Players Aspen Holdings and MSD

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