The founder of “R-Pharm” Alexey Repik will earn $200 million, and Mitsui will have the option to increase its share to 20%.
Japanese Corporation Mitsui acquiress 10% of one of the largest Russian manufacturers and distributors of medicines – group of companies “R-Pharm”. Japanese Corporation acquires a share in “R-Pharm” for $200 million from Chairman of the Board of Directors of “R-Pharm” Alexey Repik. The transaction is expected to be closes in September 2017.
In the course of the transaction until the end of July 2017 Mitsui will have the option to expand its share to 20% under the same conditions that as the purchase of first 10% stake, says Mr. Repik. Now, he said, the possibility of expanding shares of Mitsui is being discussed with the involvement of major public, financial and industrial investors.
Earlier, in December 2016, the Mitsui’s desire to spend 15-20 billion yen ($130-174 million) for 10% of “R-Pharm” was mentioned by Nikkei, which was quoted by Reuters. Then a person familiar with the negotiations said that a stake in “R-Pharm” will be sold depending on the total number of investors. If only Mitsui & Co invested it would be 10%, if a pool of investors – it can be up to 20%, he said.
As per company’s website “R-Pharm” works in Russia, USA, Japan and India. The turnover in 2015 was 74 billion rubles. “R-Pharm” is the largest supplier of medicines to the State organizations (35.6 billion rubles; 10,6% market share). “R-Pharm” owns three plants in Russia and one in Germany, it also announced the construction of a plant in Azerbaijan and Turkey, in addition, the company has assets in the United States, the United Arab Emirates and India.
The Japanese Corporation is intersted solely in Russia and CIS business of “R-Pharm”, said Repik, therefore the Russian and international assets are planned to be split by September 2017. International assets of Russian companies in Turkey, USA, UAE, India and Germany will not participate in the transaction, he added.
Mitsui & Co is part of the Mitsui Group. Mitsui & Co is involved in doing business worldwide: logistics, finance, infrastructure, metallurgy, chemical industry, energy, food; its has shares in the network operator of private hospitals Malaysia IHH Healthcare Berhad, in the Indian Claris Otsuka (intravenous medications), Japanese pharmaceutical company MicroBiopharm. According to its own data, the value of the Mitsui & Co assets is $96,6 billion, revenue – $42.1 billion.
After closing the deal with the Japanese investor “R-Pharm” is not planning to sell shares within the next 3-5 years, said Mr. Repik.