Veropharm board recommends Avdeyev offer
MOSCOW. July 10 (Interfax) - Directors at pharmaceuticals manufacturer OJSC Veropharm at a July 9 meeting recommended that shareholders accept an offer by Credit Bank of Moscow co-owner Roman Avdeyev to buy 18.8% of the company, Veropharm said in a statement.
The board considers the offer price of 1,000 rubles per share to be justified and that it complies with the law.
"The board welcomes plans by GardenHills to continue Veropharm's business and safeguard jobs," the company said.
Reports have said Avdeyev could spend 1.88 billion rubles consolidating 100% of Veropharm ahead of its proposed sale to U.S. company Abbot.
LLC GardenHills, which is controlled by Avdeyev, has posted an offer to buy the outstanding 1.88 million shares or 18.8% of the company for 1,000 rubles each.
Abbot is prepared to buy 100% of Veropharm for 17 billion rubles ($495 million).
GardenHills bought 52% of Veropharm from Pharmacy Chain 36.6 for 5 billion rubles in August last year. It spent another 2.8 billion rubles building its stake up to 81.1% and will bring its total spend up to 9.7 billion rubles if it buys the remaining 18.8%. In other words, Avdeyev could make a profit of 7.3 billion rubles by selling to Abbot.
Veropharm is one of Russia's largest producers of generic medicines, oncological medicines and medical bandages. The company owns three factories in Belgorod, Voronezh and Pokrov. Sales fell 45.3% last year to 5.269 billion rubles and EBITDA fell 26.6% to 1.165 billion rubles.
