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Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) said the plan to purchase a majority stake in Swiss pharmaceutical company Osmopharm through a share swap and cash arrangement has hit a snag.
One of the parties to the SAR 16.1 million ($4.3 million) deal, Sigma Pharmaceuticals Industries (Sigma), has “terminated” the transaction agreement, as not all regulatory approvals were obtained by November 30, 2024.
Last November 2023, SPIMACO signed a sale and purchase agreement (SPA) with the shareholders of Osmopharm, including SIGMA, Bruno Scapinelli and Ahmed Abd El Monem Aly Habib, to acquire a 68% stake in Osmopharm and divest a 76.4% shareholding in Egypt-based SPIMACO Misr for Pharmaceutical Industries through a share swap and cash consideration.
SPIMACO had agreed to take over a total of 68 shares in Osmopharm, representing 68% of the Swiss company’s share capital by transferring more than 171,000 shares in SPIMACO Misr and for a cash consideration of CHF 800,000, or roughly SAR 3.3 million.
The completion of the transaction was subject to obtaining approvals from authorities in Saudi Arabia and Egypt, and SPIMACO and SIGMA were given the option to terminate the SPA within a year of signing.
(Writing by Cleofe Maceda; editing by Seban Scaria)
