Pharmstandard seeks to acquire Bever Pharmaceutical
13 August 2013 | 10:46am
StockMarketWire.com - Pharmstandard OJSC has announced key terms for a possible acquisition of 100% of the share capital of Bever Pharmaceutical.
Total consideration for the acquisition of Bever is agreed at $590m and will be funded by the combination of Pharmstandard's shares and GDRs owned by Pharmstandard-Leksredstva to the amount of $542m and cash of $48m, which may be financed from external sources.
Pharmstandard-Leksredstva currently holds Pharmstandard's shares and GDRs on its balance sheet at approximately $475m.
The company says its 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.
Bever is 100% controlled by Bristley Enterprises, which is owned by Dr. Alexander Shuster, the company's non-executive member of the Board of Directors. Upon completion, Bristley will become the company's second largest shareholder with an approximately 18.74% stake.
Completion of the Transaction is subject to approval at the Company's extraordinary shareholder meeting ("EGM"), which is scheduled for later this week.