MDY Healthcare set to repay debts and reward shareholders

MDY Healthcare is set to realise its investment in Medivance on the completion of the acquisition of the firm by CR Bard for a total cash consideration of around $250m.

The company will receive about £13.98m for its holding in the firm, which it will use to repay all outstanding debt together with all accrued interest.

The firm has so far received £12.80m, with the remaining balance due to be paid

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within the next 17 months.

It is also the company's intention to return the majority of the funds received to shareholders by the end of March 2012 and said it is in discussions with its advisers on the most efficient and timely way to achieve this.

In a statement the firm said: "The company's strategy going forward is to make further payments to shareholders on receipt of any escrow funds and the realisation, at the appropriate time, of the company's investment in Stanmore."

The share price rose 21.98% to 55.5p by 12:55.

NR