SPIMACO deal to acquire 68% stake in Osmopharm falls through
Deal News | Dec 05, 2024 | Zawya
In a significant development within the pharmaceutical industry, Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) has announced the termination of its intended acquisition of a substantial 68% stake in the Swiss pharmaceutical firm Osmopharm. The original agreement, valued at SAR 16.1 million ($4.3 million), was set to be executed through a combination of share swap and cash considerations. Unfortunately, the failure to secure all necessary regulatory approvals by the deadline, November 30, 2024, led Sigma Pharmaceuticals Industries (Sigma), a key party to the agreement, to call off the transaction. This move came despite the signing of a sale and purchase agreement in the previous year, 2023, involving Sigma, along with other shareholders like Bruno Scapinelli and Ahmed Abd El Monem Aly Habib. Part of the deal included SPIMACO's commitment to divest 76.4% of its shareholding in Egypt-based SPIMACO Misr for Pharmaceutical Industries. The proposed deal involved SPIMACO acquiring 68 shares in Osmopharm and providing over 171,000 shares in SPIMACO Misr plus a cash payment of CHF 800,000. The transaction's progress was contingent upon receiving the necessary clearances from the relevant Saudi and Egyptian authorities, with a pre-agreed termination option available within a year post-signing.
Sectors
- Pharmaceuticals
- Mergers and Acquisitions
Geography
- Saudi Arabia – SPIMACO, the primary party in the acquisition attempt, is based in Saudi Arabia, and the regulatory approvals needed for the deal included those from Saudi authorities.
- Switzerland – Osmopharm, the target company for acquisition by SPIMACO, is based in Switzerland, making it an integral geographical focus of the article.
- Egypt – The SPIMACO Misr shares involved in the transaction are related to Egypt-based operations, necessitating regulatory involvement from Egyptian authorities.
Industry
- Pharmaceuticals – The article is primarily concerned with pharmaceutical companies, including SPIMACO and Osmopharm, which focus on the production and sale of drugs and medical appliances.
- Mergers and Acquisitions – The article discusses a planned but ultimately scrapped acquisition deal involving SPIMACO and Osmopharm, illustrating typical M&A activity within the industry.
Financials
- SAR 16.1 million – The value of the intended transaction for acquiring a 68% stake in Osmopharm.
- CHF 800,000 – The cash consideration involved in the acquisition plan of Osmopharm.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) | Bidding Company | Company | SPIMACO is a Saudi pharmaceuticals company attempting to acquire a majority stake in Osmopharm. |
| Osmopharm | Target Company | Company | A Swiss pharmaceutical company identified as the target for the acquisition by SPIMACO. |
| Sigma Pharmaceuticals Industries (Sigma) | Selling Company | Company | A stakeholder in Osmopharm and one of the parties involved in the terminated SPA with SPIMACO. |
| Bruno Scapinelli | Shareholder | Person | One of the shareholders of Osmopharm involved in the SPA agreement. |
| Ahmed Abd El Monem Aly Habib | Shareholder | Person | Another shareholder of Osmopharm involved in the SPA agreement. |