Evolutec to go into voluntary liquidation

The Board of UK drugmaker Evolutec intends to recommend the return of all remaining cash to shareholders by placing the company into members' voluntary liquidation. The firm came to this decision following consultation with its major institutional shareholders, and is also proposing to delist its shares from the Alternative Investment Market of the London Stock Exchange on July 9.

The voluntary liquidation and delisting of the shares will be subject to shareholder approval. Accordingly, the board intends to send a circular to shareholders convening an extraordinary general meeting to be held on July 6 to consider the relevant resolutions.

Evolutec expects that a total amount of approximately L5.5 million ($10.9 million) will be available for distribution to shareholders representing approximately 21.3 pence per ordinary share. Whilst the exact amount and timing of any distribution is uncertain, the appointed liquidators have indicated that a first distribution of approximately 60% of the expected funds should be paid to shareholders in October. A second distribution will be made in 2008 subject to tax clearances.