China Animal Healthcare

China Animal Healthcare: On Company's possible delisting offer previously announced 22 May 2012, the Company has entered into a conditional subscription agreement with Lilly, a new independent investor to subscribe for a non-controlling minority shareholding in the Company. Lilly’s investment will be conducted in 2 tranches, raising an aggregate amount of $120m to be primarily used to partly fund the Possible Delisting Offer and to repay the Convertible Bonds (due to be repaid on or before 15 July 2013). -In the 1st tranche, Lilly will subscribe for 53.1m First Tranche shares at the issue price of $0.30/share and 106.1m free warrants with an exercise price of $0.30/warrant irrevocably payable on issue; Upon completion of 1st tranche, Lilly would have an 8.33% stake; -In the 2nd tranche, Lilly will subscribe for 240.9m Second Tranche Shares at the issue price of $0.30/share; Upon completion of the 2nd tranche, Lilly would have an 11.2% stake; The Issue Price of both tranches are the same as the cash exit offer price for the Possible Delisting Offer of $0.30 as set out in the announcement of the Possible Delisting Offer dated 22 May 2012. The aggregate amount which will be raised from the Lilly Subscription would be $120m. This comprises $16m raised from the subscription of First Tranche Shares, $32m raised from the subscription of Warrants and $72m raised from the subscription of Second Tranche Shares.