OR WAIT null SECS
Pharmstandard OJSC seeks to bolster its over-the-counter business through acquiring Bever Pharmaceutical.
Pharmstandard OJSC, a Russian Pharmaceutical company, has announced plans to buy Bever Pharmaceutical, a Singapore-based pharmaceutical company for $590 million in a move to bolster its over-the-counter (OTC) business.
The deal will be funded by the combination of Pharmstandard’s shares and global depository receipts (GDRs) owned by Pharmstandard-Leksredstva OJSC in the amount of $542 million and cash of $48 million, which may be financed from external sources. Pharmstandard-Leksredstva OJSC currently holds Pharmstandard's shares and GDRs on its balance sheet at approximately $475 million.Pharmastandard’s, strategic rationale for the aquistition includes securing a long-term fixed cost supply of APIs for two of its OTC products Arbidol and Aphobazolum. It is expected that Bever will be included in a proposed, spin-off of Pharmastandard’s branded OTC business.
Bever is 100% controlled by Bristley Enterprises Ltd, which is owned by Alexander Shuster, Pharmastandard’s nonexecutive member of the board of directors. Upon completion, Bristley will become Pharmastandard’s second largest shareholder with an approximately 18.74% stake.
Completion of the deal is subject to approval at Pharmstandard’s extraordinary shareholder meeting, which is scheduled for Aug. 17, 2013. The board of directors of Pharmstandard-Leksredstva OJSC made the decision to abstain from voting at the meeting.