Boehringer withdraws its £700m investment in Hikma Pharmaceuticals
pharmafile | June 23, 2020 | News story | Manufacturing and Production, Sales and Marketing | Boehringer, Hikma
Boehringer has revealed that it intends to withdraw its investment from Hikma Pharmaceuticals, with the company poised to sell 28 million shares to the value of around £70 million to institutional investors.
The decision represents the rolling back of a partnership that was struck back in 2016. Hikma responded to Boehringer’s move by announcing that it would be initiating a ‘buy back’ of up to £295 million of its shares, funding the transaction through cash and other available facilities. The shares will be acquired equal to the value they are sold to other investors.
Hikma said it had also entered into a separate deal with Boehringer to receive a 2% commitment fee of the total value of the buy back shares.
The shares were originally acquired by Boehringer in 2016 as part of the consideration for its acquisition of Roxane Laboratories, as Said Darwazah, Executive Chairman of Hikma, noted in his statement following the company’s recent decision.
“I would like to thank Boehringer Ingelheim for their support as a major shareholder in Hikma since our acquisition of Roxane in 2016. We are delighted to have the opportunity to welcome new investors into Hikma and at the same time have this unique opportunity to acquire a significant proportion of our share capital,” he said. “The buy back reflects our confidence in the future prospects of the business and we will retain significant financial flexibility to continue to execute our strategy. We remain focused on delivering future growth and value creation for our shareholders.”
Matt Fellows
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