HÀ NỘI — Japan’s Taisho Pharmaceutical Co Ltd has proposed increasing its ownership in
DHG
Pharmaceutical Joint Stock Company by 21.7 per cent.
According to
DHG Pharmaceutical, the Japanese firm has made a public offer to purchase more than 28.35 million shares.
The offered price is VNĐ120,000 (US$5.16) per share, putting the value of the deal at an estimated VNĐ3.4 trillion ($146.2 million).
Taisho will use its available cash to carry out the deal.
Taisho currently owns more than 45.76 million shares in
DHG Pharmaceutical, equal to a nearly 35 per cent stake.
If the deal is successfully executed, Taisho will raise its ownership in
DHG Pharmaceutical to nearly 56.7 per cent, or more than 74 million shares.
DHG Pharmaceutical has more than 130.7 million shares listed on the Hồ Chí Minh Stock Exchange with code
DHG.
The firm’s shares edged up 0.3 per cent to end Wednesday at VNĐ119,000 per share.
The company’s share price has jumped 40 per cent since February 11 and nearly 62 per cent since the beginning of the year.
Taisho first invested in
DHG Pharmaceutical in May 2016 by purchasing a 24.4 per cent stake for $100 million.
The Japanese firm made two more purchases of
DHG Pharmaceutical shares in 2018 that increased its ownership, first to 24.9 per cent and then to 35 per cent.
In July 2018, the State Securities Commission approved
DHG Pharmaceutical’s request to lift the foreign ownership bar from the 49 per cent limit.
The State Capital Investment Corporation (SCIC) – the representative of the Government that controls State capital in local companies – is the largest shareholder at
DHG Pharmaceutical with a 43.3 per cent stake.
DHG Pharmaceutical is the largest Vietnamese pharmaceutical firm by market capitalisation and revenue.
As of the end of trading on Wednesday, the market value of
DHG Pharmaceutical was more than VNĐ15.5 trillion.
In 2018,
DHG Pharmaceutical reported nearly VNĐ3.9 trillion in total revenue and VNĐ651.6 billion in post-tax profit.
Its full-year revenue fulfilled 97 per cent of the target and was 4 per cent lower than the 2017 figure. Meanwhile, its post-tax profit rose slightly from the 2017 number of VNĐ642 billion. — VNS
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