Saturday, June 12, 2010

#Update:* Boustead buying 86% of Pharmaniaga for RM534m

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] is strengthening its pharmaceutical business with the proposed acquisition of an 86.81% stake in PHARMANIAGA BHD [] for RM534 million.

Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said on Friday, June 11 the stake would be acquired from UEM Group Bhd.

The price'' works out to RM5.75 per share or a 12% premium to its last traded price on Thursday of RM5.10.

"We are confident this exercise will place us on a stronger footing to further build our pharmaceutical arm whichis part of the group's manufacturing and services division. Boustead Group's Idaman Pharma Marketing Sdn Bhd already has a presence in the growing healthcare industry," he said.

Lodin said Boustead expected to benefit from cost improvements following the streamlining and optimising of manufacturing facilities, production capacities between the Boustead group and Pharmaniaga's plants.

"We plan to expand our pharmaceutical business by seizing opportunities in ASEAN's biggest market, namely Indonesuia, via Pharmaniaga's existing logistic operations network there," he said.

Upon completion of the acquisition, the Boustead Group will undertake a manndatory general offer to acquire the remaining shares at an offer price comparable to the terms of sales and purchase agreement. The agreement was signed on Fridaty.

"Although we are bound to undertake a MGO, we have no intention of taking Pharmaniaga private. We intend to maintain its listed status as this is in line with our overall corporate strategy of retaining a select and valuable number of entities as public listed companies," he said.

Boustead and Pharmaniaga will resume trading on Monday, June 14.

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