NANOTECHNOLOGY company pSivida has simplified its corporate structure by acquiring 100 per cent of its UK operating subsidiary, pSiMedica.
The $57 million transaction also gives pSivida 100 per cent ownership of Singapore company pSiOncology, which recently commenced human trials of its lead ‘brachytherapy’ product.
The deal results in QinetiQ, Europe’s largest research agency, being the major shareholder in pSivida with a 17.6 per cent holding.
The next major steps for pSivida are likely to be public listings in the UK and US within 12 months.
Prior to this week’s transaction, Perth-based pSivida held a 46.3 per cent direct holding in pSiMedica and controlled a further 7 per cent.
It will issue a total of 49.1 million shares at $1.09 and pay $4.3 million in cash to the other owners of pSiMedica, including QinetiQ and pSiMedica management. This values the deal at $57 million, although pSivida managing director Gavin Rezos said this substantially understated the value of the business.
He said the transaction was valued on the basis of pSiMedica being a privately held company and pSivida’s position as controlling shareholder with pre-emptive rights.
Mr Rezos said he was pleased to move to a more simplified ownership structure.
“It is an outcome that both shareholders and investors had been looking for and will broaden pSivida’s appeal with institutional investors, particularly as pSivida looks to list both in the US and the UK,” Mr Rezos said.
The company has already widened its ownership this year, raising $27.5 million via share issues to European and US institutions.
pSivida and its various subsidiaries (now wholly owned) are seeking to commercialise a porous silicon technology, BioSilicon. Potential applications include controlled drug delivery, brachytherapy (i.e. chemo or radio therapy from inside a tumour), tissue engineering and orthopaedics.
