09:34 Thu 21 Jan 2021
Beximco Pharmaceut - Proposed acquisition of stake in Sanofi Bangladesh
This announcement contains inside information as stipulated under the
BEXIMCO PHARMACEUTICALS LTD.
Proposed acquisition of a majority stake in Sanofi Bangladesh Limited
Deal in line with strategy to expand core capabilities and product offering
Beximco Pharmaceuticals Limited ("Beximco Pharma" or "the Company", or "the Group"; AIM Symbol: BXP, LEI No.: 213800IMBBD6TIOQGB56), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, announces it has entered into a binding commitment with Sanofi group regarding the acquisition of a majority stake in Sanofi Bangladesh Limited ("Sanofi Bangladesh") for a base-price consideration of circa
Highlights
· Expands the Company's product offering and reinforces its strategy to diversify into new and expanding specialty therapy areas
· Strengthens Beximco Pharma's position as a leading pharmaceutical company in
· Proposed acquisition is expected to be earnings accretive on completion
Sanofi
Sanofi Bangladesh is part of the wider group, Sanofi S.A. ("Sanofi"), a global biopharmaceutical company focused on human health. The operations in
Sanofi Bangladesh's state-of-the-art manufacturing facilities, including a PIC/S certifiable manufacturing facility for the leading antibiotic, cephalosporin, are spread over c25 acres of land, located near Beximco Pharma's manufacturing facility in Tongi. Sanofi Bangladesh has over 800 employees and produces approximately 100 branded generic products, predominately for the local market. Sanofi Bangladesh has a strong presence in cardiology, diabetes, oncology, dermatology and CNS. Sanofi also supplies its global brands of vaccines, insulins and chemotherapy drugs to
In the year ended
Acquisition rationale
Sanofi Bangladesh is a strong strategic fit for Beximco Pharma, with the potential to generate opportunities for long-term value creation for both companies, providing a strong foundation for sustainable growth, as well as enhancing the Company's corporate reputation within the global territories it operates.
The Proposed Transaction would enhance and accelerate Beximco Pharma's strategy to consolidate its position as a leading pharmaceutical company in
The Proposed Transaction
The Proposed Transaction is for a total of 1,963,241 shares, representing approximately 54.6% of Sanofi Bangladesh's total share capital. Beximco Pharma was selected as the preferred bidder in a competitive process. The remaining 45.4% shares in Sanofi Bangladesh is owned by the Government of
The base-price consideration of
If the Proposed Transaction is not approved by the Foreign Exchange Investment Department of Bangladesh Bank, or has not completed by
Further announcements will be made by the Company as appropriate.
Beximco Pharma Managing Director, Mr
"We are delighted to announce our intention to acquire a majority stake in Sanofi Bangladesh. If approved, it will be the second strategic acquisition in the Company's history, following that of Nuvista Pharma Limited in 2018, and is testament to our continued commitment to delivering affordable treatments and breakthrough therapies to the growing market in
For further information please visit www.beximcopharma.com or enquire to:
Beximco Pharma |
Tel: +880 2 58611001, ext.20080
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S M Rabbur Reza, Chief Operating Officer Tel: +880 2 58611001, ext. 20111
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Tel: +880 2 58611001, ext.20030
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SPARK Advisory Partners Limited (Nominated Adviser) Tel: +44 (0)20 3368 3551 / 3555
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SP Angel Corporate Finance LLP (Broker) Tel: +44 (0) 20 3470 0470
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FTI Consulting Tel: +44 (0)20 3727 1000
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About Beximco Pharmaceuticals Limited
Beximco Pharma is a leading manufacturer and exporter of medicines based in
Beximco Pharma′s state-of-the-art manufacturing facilities are certified by global regulatory authorities of
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