Pharmstandard seeks to acquire Bever Pharmaceutical

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.

Suggested Articles

Turns out Procter & Gamble didn’t want Pfizer’s consumer health unit after all. But it did want Merck KGaA’s.

Private equity firm, in exclusive talks with Sanofi, says it'll invest to pump up Zentiva into an "independent European generics leader."

With suitor Takeda circling Shire, the Dublin-based target has pulled off a deal of its own.