Goldshield considering demerger

Talks of a management buyout at Goldshield have broken down. The
healthcare services company, which announced it was in the early
stages of discussions relating to a potential MBO by CEO Ajit
Patel back in November 2006, confirmed it has ended all talks
earlier this month. As a result it now is finalising the
reorganisation of the group into two divisions. The
Pharmaceutical division would manage all of the acquired
pharmaceutical products business, while the Wellbeing division
would manage the existing direct to consumer businesses in Europe
and US, as well as the new Wellbeing business in India.

Each division would have separate management teams, with the
former division being led by Rakesh Patel and the latter by Ajit
Patel. Ajit Patel was charged by the Serious Fraud Office in
April 2006 for price-fixing, but is yet to face trial. This
reorganisation is being considered with a view to a possible
eventual demerger to allow each division freedom to develop and
invest in their respective businesses.


Twitter Facebook LinkedIn WhatsApp

Related News

Berghaus – now a B Corp

Sign up to receive our newsletter