BURNS PHILP FINALIZES AGREEMENT FOR CONTROL OF APPLIED MICROBIOLOGY, INC.
BURNS PHILP FINALIZES AGREEMENT FOR CONTROL OF APPLIED MICROBIOLOGY, INC. SYDNEY, Australia, July 1 /PRNewswire/ -- Burns, Philp & Company Limited (OTC Bulletin Board: 3BPHCY) has announced the signing of an agreement to raise its stake in the United States biotechnology firm, Applied Microbiology, Inc. (NASDAQ: AMBI), from 18 percent to 63 percent by acquisition of 9.3 million of the 16.9 million AMBI shares outstanding. In turn, Applied Microbiology will acquire all the outstanding shares, valued at approximately $A53 million, of wholly-owned Burns Philp subsidiary Aplin & Barrett, and certain related technology. Burns Philp said Tuesday it will invest $US 1.5 million in five year non-convertible preferred stock to be issued by AMBI, with dividends paid at prime. Formal closing is subject to certain terms and conditions. An additional 935,000 shares are reserved for issuance to Burns Philp in August 1993 upon the realization of certain sales targets by Aplin & Barrett. Based in New York, Applied Microbiology is a biopharmaceutical company engaged in the development and commercialization of antibacterial proteins for the prevention and treatment of infectious diseases in humans and animals. Applied Microbiology owns exclusive rights to the pharmaceutical uses of nisin, which it sells under the trademark "AMBICIN-N", and is a customer of Aplin & Barrett. Burns Philp shares, listed on the Australian Stock Exchange, are traded in the U.S. in the form of American Depositary Receipts (ADRs). The ADRs are quoted on the National Association of Securities Dealers' Electronic Bulletin Board (Symbol:3BPHCY). One ADR equals six Burns Philp shares. Applied Microbiology shares are traded on the NASDAQ National Market System (Symbol:AMBI). At NASDAQ closing June 30, 1992, the shares were traded at $US 4 3/8. After the transaction is concluded, Aplin & Barrett will operate as a subsidiary of AMBI. Burns Philp will be appointing Ian Clack, the San Francisco-based General Manager of Burns Philp's Food and Fermentation Division, and two others to join Dr. John Friend, General Manager of Burns Philp's Food and Fermentation Technology & Research Division, on the seven member AMBI board of directors. David Guttman, present Chairman of AMBI, will become Chairman and CEO of the newly-combined entity. With facilities in Dorset, England, Aplin & Barrett is the world's premier producer of nisin, a natural antimicrobial agent produced from the fermentation of milk, used for a variety of applications as a food preservative. Andrew Turnbull, Managing Director and CEO of Burns Philp, commented, "We are pleased with the progress AMBI has made during our relationship over the years. We are very excited about the potential created by the combination of the two businesses and expect to receive a substantial return on our investment as we benefit from the new uses and expanding markets for nisin." David Guttman, CEO of the new entity, said, "The acquisition of Aplin & Barrett will give AMBI the cash flow necessary to permit a more rapid entry into new and major fields of application in the pharmaceutical industry, and an ensured source of supply to its specifications of raw materials. In addition, Aplin & Barrett bring the benefits of a solid balance sheet and an excellent, in-depth management in all major areas to our new firm." -0- 7/1/92 /CONTACT: Susanne Larson, (61-2) 259-1296, or home, (61-2) 810-0105, or Andrew Turnbull, (61-2) 259-1111, both of Burns, Philp in Sydney, or Paul Whitelaw or Hill and Knowlton, 212-697-5600, for Burns, Philp/ (3BPHCY AMBI) CO: Burns, Philp & Company Limited; Applied Microbiology, Inc. ST: New York IN: MTC SU: TNM
KD -- NY097 -- 5816 07/01/92 14:57 EDT
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|Date:||Jul 1, 1992|
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