MDS Inc. to Benefit From Hemosol Tax Losses
12 Februar 2004 - 1:45PM
PR Newswire (US)
MDS Inc. to Benefit From Hemosol Tax Losses TORONTO, Feb. 12
/PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS, NYSE: MDZ) today
announced that it has entered into an agreement with Hemosol Inc.
that, in return for a cash payment of $16 million and certain other
consideration, will allow MDS to utilize the accumulated income tax
losses and other tax assets of Hemosol through a reorganization of
certain MDS diagnostics assets and Hemosol. The assets and
liabilities of Hemosol will be transferred to a new company to be
called Hemosol Corp. MDS's interest in Hemosol Corp. will be
proportionate to its existing holdings in Hemosol Inc. MDS
estimates the present value benefit of the transaction to be
approximately $55-60 million, which will be realized over the next
several years. Completion of the transaction is subject to a number
of conditions, including approval by Hemosol shareholders. Further
details regarding this transaction will be available in the Hemosol
information circular which will be mailed in the next few weeks. At
MDS Inc., our more than 10,000 highly skilled people provide
enabling products and services for the development of drugs and the
diagnosis and management of disease. We focus on helping discover
and test new drugs, assisting doctors to diagnose and treat
patients and preventing the spread of disease. Find out more about
MDS Inc. (TSX: MDS; NYSE: MDZ), at http://www.mdsintl.com/ or by
calling 1-888-MDS-7222, 24 hours a day. DATASOURCE: MDS Inc.
CONTACT: Media Inquiries: Mike Nethercott, Vice-President,
Corporate Marketing & Communications, (416) 675-6777 ext. 2656;
Investor Inquiries: Sharon Mathers, Vice-President, Investor
Relations, (416) 675-6777 ext. 2695
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