GSD Goldshield Grp

RNS Number:5578U
Goldshield Group PLC
10 April 2007


                              

                              Goldshield Group plc

            TERMINATION OF DISCUSSIONS AND PROPOSED STRATEGIC REVIEW

Further to the announcement made by Goldshield Group plc ("Goldshield" or the
"Company") on 28 November 2006 that the Company was in early stages of
discussions in relation to a possible management buy out of the Company,
Goldshield confirms that all such discussions have ceased.

During this period, the Company explored alternative strategic arrangements with
a view to enhancing shareholder value. As a result of the Board's deliberations,
the Company is in the process of finalising the reorganisation of Goldshield
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. 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. Each management team has been tasked by the Board to
examine the detailed implementation of their respective commercial plans as
independent, separately managed and publicly quoted businesses prior to any
final recommendation by the Board for approval by shareholders.

Whilst these reorganisation plans are at a preliminary stage and subject to
various clearances, it is anticipated that a circular to shareholders seeking
shareholder permission and also containing financial information for each of the
businesses for the year end 31st March, 2007 would be sent to shareholders
following completion of the annual financial audit. This would be sent out to
shareholders shortly after the annual accounts become available, normally
scheduled for the end of July. Further announcements will be made as and when
appropriate. Goldshield is being advised by Panmure Gordon & Co in relation to
this matter.

The above plans are at a very preliminary stage and there can be no certainty
that any reorganisation will eventually be completed or, if completed, in the
same form as currently envisaged above.


Trading Update

The Board reiterates its view, published in the Interim Financial Statement on
29 November 2006 that it expects that the Company's performance in the second
half will be at a similar level to the first.


                                     -ends-

Date: 10 April 2007

Enquiries:

Peter Brown, Independent Director, 
Goldshield Group plc                          020 7402 6050
Ajit Patel, CEO,          
Goldshield Group plc                          020 8588 9100
Rakesh Patel, Finance Director, 
Goldshield Group plc                          020 8588 9100


Edward Farmer, Director, Panmure Gordon       020 7614 8384

Jonathan Gillen, City Profile                 020 7448 3244






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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