Beximco Pharmaceuticals is set to obtain 54.6 % stake in Sanofi Bangladesh for about Tk 400 crore, since it looks to extend its product base and diversify into new areas.
With this, the French pharmaceuticals giant will exit Bangladesh ending its occurrence in the country that spans more than six decades.
In a posting on the London STOCK MARKET, the neighborhood pharmaceuticals maker said it entered right into a binding commitment with Sanofi Group to acquire a majority stake in Sanofi Bangladesh.
The proposed transaction is subject to the approval of the Bangladesh Lender and completion of share purchase agreement.
The proposed transaction will be completed within the next three to nine months, said Beximco, one of the primary drug-manufacturers in Bangladesh, in a separate statement.
"We will be delighted to announce the proposed acquisition of many stake in Sanofi Bangladesh," explained Beximco Pharma Managing Director Nazmul Hassan.
If approved, it'll be the next strategic acquisition in the company's record. It obtained Nuvista Pharma Ltd (formerly Organon Bangladesh) in 2018.
"The acquisition of Sanofi Bangladesh will serve as a strong foundation for sustainable growth later on through the strengthening of our position in remedy areas where Sanofi includes a good footing," said Hassan.
"We believe the initial and various portfolio of Sanofi will complement our existing product range and drive significant earnings growth for the business."
The transaction value will be $48.5 million in minimum and $55 million in optimum according to cash reserves on your day of closing, explained Salman F Rahman, vice-chairman of Beximco Group, in a WhatsApp message.
Shares of Beximco Pharma rose 1.48 % to Tk 198.20 on the Dhaka STOCK MARKET yesterday.
The news came as Sanofi, which owns 54.6 % shares of Sanofi Bangladesh, has been seeking to leave Bangladesh after failing to compete with
domestic companies. Its making capacity hasn't expanded for quite some time. Sanofi's show in the country's pharma industry is less than 2 %.
The industries ministry retains 25.36 per cent stake in Sanofi Bangladesh, and Bangladesh Chemical substance Industries Corporations owns 19.96 per cent shares.
Sanofi has been operating found in Bangladesh since 1958. It merged with different entities to create Sanofi-Aventis in 2004. In 2013, it was renamed Sanofi Bangladesh Ltd.
The business announced its intent to market its stake in Sanofi Bangladesh in October 2019.
With a lot more than 800 staff members and approximately 100 branded generic goods, Sanofi Bangladesh includes a strong occurrence in cardiology, diabetes, oncology and dermatology segments.
Sanofi supplies it has the global makes of vaccines, insulins and chemotherapy prescription drugs to Bangladesh through direct imports, that your group will continue steadily to distribute following a completion of the proposed purchase, said Beximco in it has the publishing on the London Stock Exchange.
In the entire year that finished in December 2019, Sanofi Bangladesh generated Tk 387.95 crore in revenue. Its earnings before tax was almost Tk 50 crore. Sanofi possessed gross assets of almost Tk 610 crore.
In a statement, Sanofi Bangladesh said, "Your choice to market its share in Bangladesh is therefore of Sanofi's global business strategy."
The statement said Beximco Pharma was selected as Sanofi Bangladesh's recommended bidder and had had the opportunity to complete its due diligence enquiries as part of the sale process.
"Around the world, Sanofi regularly assesses the best ways in which to serve our customers. Accordingly, we've carefully determined Beximco Pharma which will continue to build on Sanofi's legacy through investments also to grow the organization to supply more patients with an increase of access to Sanofi's products across Bangladesh," stated Muin Uddin Mazumder, taking care of director of Sanofi Bangladesh.
In its postings on the LSE, Beximco said Sanofi Bangladesh is a solid strategic suit for Beximco Pharma, with the potential to create opportunities for long-term value creation for equally companies, providing a solid foundation for sustainable growth, as well as boosting the company's corporate status within the global territories it works.
"The proposed transaction would enhance and accelerate Beximco Pharma's technique to consolidate its position as a leading pharmaceutical company in Bangladesh by expanding its core capacities and merchandise offering for the local market."
Sanofi's manufacturing conveniences, which are spread above a location of 25 acres, happen to be located near Beximco Pharma's manufacturing facility in Tongi.