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Provider: Wright Reports
Provider: Reuters Investment Profile
Provider: Reuters Investment Profile

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Farmstandart OAO Updates on Proposed Spin-off of OTC Business and Its Listing on MICEX/RTS

Monday, 16 Sep 2013 08:00pm EDT 

Farmstandart OAO (Pharmstandard) announced that it is considering a spin-off of the Company‚Äôs branded over-the-counter business (Branded OTC) into a separate legal entity (NewCo). As a result of the proposed spin-off NewCo would operate the Branded OTC business and thereby would control 27 actively developed OTC brands. In the course of the last several years the Company has diversified its business within the Russian pharmaceutical market and has moved away from being solely focused on the OTC market. For the year ended December 31, 2012, approximately 71% of the total revenues of the Company were derived from sales of third-party pharmaceutical products, prescription pharmaceuticals and medical equipment and from other activities. The Company's management sees a potential strategic benefit in the spin-off because operating the Branded OTC business separately may be more efficient and a separate listing of NewCo may attract additional investor interest so that the combined value of Pharmstandard and NewCo may increase. An EGM to approve the spin-off is scheduled to take place on September 27, 2013. NewCo plans to list its shares on MICEX/RTS. If NewCo establishes a GDR program, the GDRs will be unlisted. The Company expects any spin-off of the Branded OTC business to be completed by the end of 2013. 

Company Quote

-5.0 -0.49%
3:27am EDT