STADA bids for Serbian generics producer
Germany-based generics manufacturer STADA Arzneimittel plans to take over the Serbian generics supplier Hemofarm, based in Vrsac. The management of the East-European pharmaceuticals group has welcomed the takeover offer.
Germany-based generics manufacturer STADA Arzneimittel plans to take over the Serbian generics supplier Hemofarm, based in Vrsac. The management of the East-European pharmaceuticals group has welcomed the takeover offer.
STADA's offer for all 3.3m shares of the Belgrade-listed company has been submitted to the Commission for Securities of the Republic of Serbia. The German group is offering CSD 12,345 (Euro 146.97) for each Hemofarm share, giving a total purchase price for Hemofarm of around CSD 40,739m (€ 485m).
The takeover is only valid if at least 67% of the shares are sold within the framework of the offer. STADA says it has reached contractual agreements with various shareholders, including institutional investors as well as members of Hemofarm's management, who say they will sell their shares to STADA. This would give it access to at least 59% of Hemofarm's shares but the German group will strive to achieve 100% ownership.
Hemofarm has some 27 subsidiaries in 11 countries, employs over 3,625 people and has five production locations in Eastern Europe. In 2005, it increased its sales 30% to CSD 17,261.2m (€ 205.5m).
From STADA's perspective, the acquisition is an important strategic step in the expansion of its sales activities to Eastern Europe.