Sistema to transfer Binnopharm into JV controlled by German Fresenius Kabi
MOSCOW. April 25 (Interfax) - Sistema will transfer 100% of CJSC Binnopharm into a joint venture with German Fresenuis Kabi, Sistema said in a press release.
Fresenius Kabi will contribute its Russian business, receiving a 51% stake in the JV in return.
Sistema's stake in the JV, according to an agreement signed with Fresenuis, is 37%. The remaining 12% will be held by LLC Zenitko Finance Management. Zenitco Finance Management and Sistema own 26% and 74% of Binnopharm, respectively.
"The joint venture has an initial minimum term of 5 years, after which the parties may choose to extend or seek a liquidity event. The closing of the transaction is expected after the receipt of certain regulatory approvals, including from the Russian Federal Antimonopoly Service and the Government Commission on Monitoring Foreign Investments," the press release says.
"Fresenius Kabi is one of the global leaders in segments of clinical nutrition and IV drugs, and has sold products in Russia since 1994. The joint venture is designed to combine Fresenius Kabi's portfolio of products and its extensive marketing expertise with Binnopharm's local production and distribution facilities. The joint venture will utilize Binnopharm's existing facilities to localize production of Fresenius Kabi's infusion solutions and generic products, and allow Binnopharm to promote and launch new biotech products through Fresenius Kabi's marketing force and sales network," Sistema said.
"The pharmaceutical sector in Russia has exciting prospects and we are pleased to combine our operations with Fresenius Kabi in this joint venture. We see excellent opportunities for both companies to leverage each other's strengths, such as Binnopharm's local production facilities and the extensive portfolio of Fresenis Kabi's products in order to develop a leading pharmaceutical business in Russia and the CIS," Sistema President Mikhail Shamolin is quoted in the press release as saying.
