Egypt’s Rameda Pharmaceutical said in a bourse filling on Tuesday it had withdrawn its proposal to acquire GlaxoSmithKline’s stake in Egypt (GSK Egypt).
The decision came a day after GSK Egypt’s majority shareholder Glaxo Group Limited said that the potential sale transaction is complex and it preferred to focus its efforts and resources on discussing the sale with Hikma Pharmaceuticals.
Glaxo further clarified that negotiations with further parties will consume significant resources and time.
Rameda submitted last week a non-binding letter of intent to acquire Glaxo Group Limited’s 91.2 percent stake in GSK Egypt.
Glaxo is considering selling its shareholding in GSK Egypt only as part of a comprehensive sale of the pharma and consumer businesses in Egypt – including operations that sit outside the listed entity – and its pharma business in Tunisia.
For these reasons, Glaxo said on Monday it decided “to focus its efforts and resources on discussing a transaction with Hikma Pharmaceuticals at this time.” It added that it appreciates Rameda’s interest, but it is not “in a position to engage with Rameda on discussing a potential transaction at this time.”
In January, Hikma announced plans to acquire GlaxoSmithKline’s stake in some assets including the drugmaker’s pharmaceutical, consumer commercialisation, and manufacturing business in Egypt and its drugs business in Tunisia. One day later, Glaxo signed a non-binding term sheet with Hikma for the potential sale of its entire stake in GSK Egypt.
