Omega Diagnostics Group PLC, (AIM: ODX). announced that it has selected a preferred bidder for its CD4 business after having made an announcement nearly two months back.
The preferred bidder was a medical diagnostics company that specializes in health and nutrition products.
CD4 is the section of the business that manufactures and supplies testing of VISITECT CD4, which measures human cells’ levels of CD4 protein.
A statement stated that the preferred bidder has now been given four weeks to complete due diligence. The transaction is expected to close shortly thereafter.
Omega will be paid a significant up-front cash payment and a future royalty stream tied to the theVISITECT® CD4 test sales upon completion.
Omega stated that it believes the CD4 business can be more successful under new owners who have greater investment capacity in production and product design. Omega will now concentrate on its health- and nutrition business.
Jag Grewal, CEO of Omega, commented: “We were delighted by the level of interest we have received for the CD4 business and look forward to announcing the completion of the transaction in due course. Having withdrawn from the COVID-19 market and disposed of the Alva site earlier this year, the divestment of our loss-making CD4 business will leave the Group solely focused on our higher-margin Health & Nutrition division. The net proceeds from the sale of the CD4 Business will enable our product and geographical expansion ambitions to be realised.”
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