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William Demant in Talks to Acquire French Hearing Care Provider Audika
Tuesday 17 February 2015

17 February 2015 - Danish hearing aid maker William Demant has entered into exclusive negotiations for the potential purchase of 53.9% of the share capital of French hearing care provider Audika Group SA (Audika) from the controlling shareholder Holton SAS at a price of EUR 17.78 per share, the company said on Tuesday.
If successful, the purchase of the controlling interest in Audika will under French takeover regulations commit William Demant to commence a mandatory public tender offer for the remaining 46.1% of the outstanding share capital of Audika.

Based on a price of EUR 17.78 per share, the entire transaction will amount to an equity value of EUR 168m (USD 191.77m).

The price of EUR 17.78 per share represents a premium of approx. 32% on top of the most recent stock price quoted on Euronext Paris and a premium of approx. 46% compared to Audika's weighted average share price over the last three months.
Headquartered in Paris, France, Audika is a French network of hearing care providers with more than 460 points of sale across France.

In 2014, Audika recorded revenue of EUR 98.7m as announced by the company on 19 January 2015. At this point in time, Audika has not yet disclosed earnings figures for 2014, but these will be available when Audika as expected publishes the results for 2014 on 16march 2015.
William Demant said that its intention to acquire Audika is a natural continuation of the existing partnership between the two companies. For decades, William Demant has been a supplier of hearing instruments to Audika.

The company expects that the current management team to stay onboard, including the two co-chairmen and founders, Alain Tonnard and Jean-Claude Tonnard.
Audika will launch an information and consultation process with the relevant employee representatives in accordance with French law. Furthermore, the acquisition of the controlling interest in Audika is subject to approval by the French competition authority. Timewise, the mandatory public tender offer is expected to close in June 2015 at the earliest or more likely in the second half of 2015.
William Demant's advisers on this transaction are Moelis and Co and Latham and Watkins.
Date Published: 17/02/2015
Target: Audika Group SA
Country: France
Deal Size: 191.77 (USD)
Sector: Healthcare
Type: Stakebuilding
Financing: Cash
Status: Talks
Buyer: William Demant
Buyer Advisor: Moelis and Co, Latham and Watkins