BOUSTEAD ACQUIRES PHARMANIAGA
FOR RM534 MILLION
LUMPUR, June 11, 2010 - Boustead Holdings Berhad (Boustead Group)
is set to strengthen its position in the pharmaceutical industry
via the proposed acquisition of Pharmaniaga Berhad (Pharmaniaga),
a member of UEM Group Berhad (UEM).
proposed exercise will involve the Boustead Group acquiring 86.81%
of the issued and paid-up share capital of Pharmaniaga from UEM
for a total cash consideration of RM534 million. Representatives
from Boustead Group and UEM inked the relevant legal agreements
at a signing ceremony today.
percent of the purchase consideration will be paid by the Boustead
Group to UEM on the date of the sale and purchase agreement (SPA),
while the remaining 97% will be paid 10 business days after the
last of the conditions of the SPA is fulfilled.
to YBhg Tan Sri Dato' Lodin Wok Kamaruddin, Deputy Chairman/Group
Managing Director, Boustead Holdings Berhad, "We are confident
this exercise will place us on a stronger footing to further build
our pharmaceutical arm which is a part of the Group's Manufacturing
and Services Division. Boustead Group's Idaman Pharma Manufacturing
Sdn Bhd already has a presence in the growing healthcare industry."
also expect to benefit from cost improvements as a result of the
streamlining and optimisation of manufacturing facilities, production
capacities and cross fertilisation between the Boustead Group and
Pharmaniaga plants. Furthermore, we plan to expand our pharmaceutical
business by seizing opportunities in ASEAN's biggest market, namely
Indonesia, via Pharmaniaga's existing logistics operations network
Pharmaniaga is the largest integrated local healthcare company in
Malaysia and is listed on the Main Board of Bursa Malaysia Securities.
Its core businesses include generic pharmaceuticals manufacturing
and R&D, as well as warehousing and distribution of pharmaceutical
and medical products.
the completion of the acquisition, the Boustead Group will undertake
a mandatory general offer (MGO) to acquire the remaining shares
of Pharmaniaga at an offer price comparable to the terms of the
Tan Sri added, "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."
Pharmaniaga, with a strong and stable recurring income, currently
has a presence in 38 sites across Malaysia and internationally,
including Indonesia and Vietnam.
Since its inception as a modest trading entity more than 180 years
ago, the Boustead Group has grown by leaps and bounds to comprise
more than 90 subsidiary and associate companies, and has substantial
interests in various sectors of the Malaysian economy. The Boustead
Group's operations are focused in six key areas; plantation, heavy
industries, property, finance & investment, trading and manufacturing
& services. As at 31 March 2010, Boustead Holdings Berhad's
paid-up capital is RM466 million, while its shareholders' funds
stand at RM4 billion. Market capitalisation currently is in excess
of RM3.3 billion.
This release may contain certain forward-looking statements with
respect to the financial conditions, results of operations and business
of the Group and certain plans and objectives of Boustead Holdings
Berhad with respect to these items. By their nature, forward-looking
statements involve risk and uncertainty because they relate to events
and depend on circumstances that will occur in the future and there
are many factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
on behalf of: Boustead Holdings Berhad By: acorn
communications sdn bhd
For further information, please call:
: Michael Poh at 012 395 5205 or Natalia
Ghani at 012 231 4782
Or email: firstname.lastname@example.org