Gulf Pharmaceuticals Industries (Julphar) has announced the sale of its controlling stake in Alpha Pharma, a pharmaceutical manufacturing plant in Saudi Arabia.
The sale of 51 percent ownership in the business will reduce Julphar Group’s consolidated total assets by 10 percent to 12 percent, the company said in a disclosure to the Abu Dhabi Securities Exchange (ADX).
The transaction is expected to be completed in the third quarter of 2021.
“The management does not expect a material impact [of the sale] on the operations of the Group,” the company said. The financial impact of the transaction is expected to show in the company’s results for the second quarter of the year.
Alpha Pharma is a joint venture between Julphar and Cigalah Group, a healthcare distributor in Saudi Arabia, according to the company's website.
The 75,000-square-metre facility, which can produce up to 1 billion tablets, 300 million capsules and 30 million bottles of syrups and suspensions per year, opened in Saudi Arabia’s King Abdullah Economic City in April 2017.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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