Romanian generics giant swallowed
Prague - Zentiva N.V. announced in mid-September the signing of an agreement for the acquisition of 51% of S.C. Sicomed S.A., the number-one generics company in Romania, via the acquisition of Venoma Holdings Ltd. for $102 million (Euro85 million) in cash. Venoma is a holding that owns a 51% interest in Sicomed, which is listed on the Bucharest Stock Exchange (BSE). The agreement with Venoma is subject to approval at a Zentiva shareholder meeting expected to be held in October 2005.
Zentiva also intends to launch a voluntary tender offer (VTO) for the remaining 49% of Sicomed's shares at $0.4797 (Euro0.40) per share, representing a 37% premium on the average closing of Sicomed's share price for the one-month period ending September 13, 2005. The VTO is subject to the approval of Zentiva's shareholders and the Romanian National Securities Commission.
The $200-million acquisition will be funded by a combination of existing cash resources and newly committed facilities.