GlaxoSmithKline will focus its efforts and resources on discussing the sale of its stake in Egypt with Hikma Pharmaceuticals, said GlaxoSmithKline Egypt (GSK Egypt) in a bourse filling on Monday.
The company added that it was not in a position to start negotiations with Rameda or other parties on the potential sale in the current time. It attributed its decision to the fact that the diligence and negotiation would consume “significant resources and time from the Majority Shareholder.”
It also clarified that it wishes “to minimise disruption to the business of GlaxoSmithKline S.A.E. and to ensure the continued supply of medicines, vaccines and consumer products in Egypt.”
The announcement came in response to Rameda’s letter expressing interest to buy Glaxo Group Limited’s majority stake in GSK Egypt.
Glaxo (GSK) described the potential transaction as “complex” as it is considering selling its shareholding in GlaxoSmithKline 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 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 Glaxo 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.
A day later, GSK Egypt said in a bourse filling that its board of directors has allowed Hikma to undertake due diligence, revealing that Glaxo had signed a non-binding term sheet with Hikma for the potential sale of its entire stake of 91.2 percent in GSK Egypt.
