(Alliance News) - French pharmaceutical firm Sanofi SA will sell a majority stake in its Bangladesh unit to Beximco Pharmaceuticals Ltd, the London-listed firm said on Thursday.
Beximco shares were up 5.3% at 99.00 pence each in London on Thursday morning. In Paris in the afternoon, Sanofi shares were marginally higher at 82.39p.
Beximco said it will pay around GBP35.5 million for just shy of a 55% stake in Sanofi Bangladesh, though the price for the transaction may change.
"The base-price consideration of GBP35.5 million is subject to deduction for the net financial debt and adjustments for short/excess over an agreed normative working capital at the closing date. The final consideration, which may be up to a maximum of GBP40 million, would be paid in cash on completion of the proposed transaction, from a combination of the company's own cash resources and additional debt. It is anticipated that the proposed transaction will be completed within the next three to nine months," Beximco said.
Sanofi Bangladesh generated revenue of around GBP33.6 million and pretax profit of GBP4.3 million in 2019.
"The proposed transaction would enhance and accelerate Beximco Pharma's strategy to consolidate its position as a leading pharmaceutical company in Bangladesh by expanding its core capabilities and product offering for the local market. The total pharma market in Bangladesh is worth USD2.6 billion with 97% of total demand met by local manufacturers," Beximco said.
By Eric Cunha; ericcunha@alliancenews.com
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Beximco Pharma (BXP)