Pharmabiz.com 16 Aug 2013
Pharmstandard OJSC, Russia’s leading pharmaceutical company which develops and manufactures high-quality modern pharmaceutical products, has agreed to acquire 100 per cent share capital of Singapore-based Bever Pharmaceutical Pte Ltd.
Total consideration for the acquisition of Bever is agreed at US$590 million and will be funded by the combination of Pharmstandard’s shares and GDRs owned by Pharmstandard-Leksredstva OJSC in the amount of US$542 million (price per share of RUB 2,235.4 and price per GDR of US$20.76) and cash of US$48 million, which may be financed from external sources. Pharmstandard-Leksredstva OJSC currently holds Pharmstandard’s shares and GDRs on its balance sheet at approximately US$475 million.
The company’s strategic rationale for the Transaction includes securing a long-term fixed-cost supply of critical active pharmaceutical ingredients for two flagship OTC brands Arbidol and Aphobazolum as well as significantly increasing the company’s profitability.
It is expected that Bever will be included in a proposed spin-off of the company’s branded over-the-counter business.