Pharmacy Chain 36.6 signs agreement to sell stake in Veropharm
August 29, 2013, Moscow - Pharmacy Chain 36.6 [ММВБ:RU14APTK1007], a national leader in beauty and health retail goods, is announcing a deal on the sale of the Group's 52% stake in OJSC Veropharm [ММВБ:VRPH], one of the largest pharmaceutical manufacturers in Russia. The deal totaled RUB 5.0 billion. The transaction was approved by the Board of Directors of OJSC Pharmacy Chain 36.6.
The purchaser is OOO GardenHills, which has already received the approval of the Federal Antimonopoly Service of the Russian Federation for the transaction. The purchaser's beneficial owner is a Russian businessman Roman Avdeev.
The decision to sell the pharmaceutical business was taken as part of the global restructuring activities of Pharmacy Chain 36.6. The proceeds of the transaction will be used to reduce the debt of the retail pharmacy business.
Commenting on the deal, CEO and co-owner of OJSC Pharmacy Chain 36.6 Artem Bektemirov said:
"Today's deal will reduce the debt burden and open up additional opportunities for further business development of 36.6. In addition to the sale of OJSC Veropharm shares, the company is planning to restructure its retail pharmacy business. This will probably include the sale of stores in unprofitable regions as well as loss-making commercial and non-commercial real estate. Comprehensive measures will further reduce the debt and allow the management to focus its efforts on the development of the retail business."
Roman Avdeev, whose company OOO GardenHills acquired the OJSC Veropharm shares, said:
"I believe in the potential of the Russian pharmaceutical market and consider that the acquisition of one of the industry's leading manufacturers is a sound investment. There will be no major changes in the company's strategy in the near future and the core focus will continue to be on completion of the ambitious investment program planned for 2014."