Beximco to get majority stake in Sanofi Bangladesh

January 23, 2021 Business
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.
Source: Thedaily Star

Tags :