Riyadh – Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) signed sale and purchase agreements (SPAs) to acquire a 68% stake in Swiss-based Osmopharm and exit its 76.40% equity in Egypt-based SPIMACO Misr for Pharmaceutical Industries through a share swap and a cash payment deal, according to a press release.
SPIMACO will pay a total value of SAR 16.10 million for the takeover and exit transactions. The Saudi firm will buy 68 shares in Osmopharm and transfer 171,973 shares in SPIMACO Misr for CHF 800,000 that is equivalent to SAR 3.30 million.
The SPAs were penned between the Saudi SPIMACO and SIGMA Pharmaceuticals Industries, Bruno Scapinelli, and Ahmed Abd El Monem Aly Habib. Meanwhile, the deal is expected to be completed in the first half (H1) of 2024.
Following the conclusion of the transaction, SPIMACO will own a 68% majority stake in Osmopharm, while both SIGMA and Habib will own 76.40% in the Egyptian subsidiary.
CEO of SPIMACO, Jerome Cabannes, said: “This acquisition is a strategic step that will allow us to realize substantial synergies, gain access to innovative modified release drug delivery technologies, and accelerate our expansion into the European market.”
The exchange agreement is expected to enhance SPIMACO’s financial statements by consolidating Osmopharm’s financial results and reducing the Saudi company’s ownership in SPIMACO Misr to a minority stake.
Meanwhile, SPIMACO will have a put option to exit its remaining 14.20% stake in SPIMACO Misr, while Sigma will have a call option.
It is worth noting that during in the first nine months (9M) of 2023, SPIMACO achieved net profits worth SAR 40.40 million and revenues of SAR 1.32 billion.
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