Beximco Pharma shares soar on Sanofi takeover news
While investors continued to demonstrate a tendency towards profit-booking, shares of Beximco Pharmaceuticals rose 5.15 % to Tk 208.40 yesterday after information broke that it could buy a significant stake in Sanofi Bangladesh.
The DSEX, the Dhaka Share Exchange's (DSE) benchmark index, dropped 20 points, or 0.35 %, to 5,815 yesterday.
The neighborhood drug company's stock was the most sought-after of your day thanks to the firm's recent announcement that it could buy 54.6 per cent of Sanofi's Bangladesh unit so that you can diversify its merchandise base.
The remaining 45.4 % shares are owned by the Bangladesh government, relating to a disclosure on the DSE website.
The base-price consideration in most stake is £35.5 million, at the mercy of the deduction of the business's net credit card debt and adjustments for short or excess over an agreed normative working capital at the closing date, it explained.
The final consideration, which might be up to a optimum of £40 million, will be paid in cash on completion of the proposed transaction from a combo of Beximco Pharma's own cash resources and extra debt.
It really is anticipated that the proposed deal will be completed within the next three to 9 a few months, it added. Beximco Pharmaceuticals as well topped the turnover list yesterday with trade worthwhile Tk 256 crore followed by Beximco, LankaBangla Financing, Robi Axiata and Summit Power.
Buyers realised that the company has huge potential all alone as the purchase of many stake in Sanofi is only going to enhance it again, according to a share broker.
"So, they are shopping for its shares," he said, adding that they should remain cautious since its benefit has already more than tripled over the last few months.
Investors have already been pouring their money into most of Beximco Group's considerations for recent months, so all of the stocks have already been rising, said a good merchant banker preferring anonymity.
A few of the companies performing well for recent months include Beximco, Beximco Pharmaceuticals, IFIC Bank and Shinepukur Ceramics, which are worries of Beximco Group.
"So, almost all of those companies are actually overvalued," the merchant banker said, adding that many of these stocks may lead to losses.
Against this perspective, investors should channel their money considering a company's probable and performance, he said.
The DSE's turnover, a crucial indicator of the marketplace, rose 19 % to Tk 1,454 crore.
Newly listed Energypac Electricity Generation topped the gainers' list, rising 9.92 per cent, accompanied by Nitol Insurance, Shyampur Sugar Mills, Shinepukur Ceramics and Northern Insurance.
Paramount Insurance Company shed the most, falling 7.61 per cent, followed by Eastern INSURANCE PROVIDER, Peoples INSURANCE PROVIDER, Mercantile INSURANCE PROVIDER and Northern Islami Insurance.
The port city bourse also fell yesterday as the overall index of the Chittagong STOCK MARKET, the CASPI, dropped 34 points, or 0.20 per cent, to 16,986.
Among the 253 stocks to witness trade, 67 advanced, 145 fell and 41 remained unchanged.
