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Wednesday, 16 October 2019

RX Health Care Fund to acquire 80-85% of United Pharma

M&A WATCH- Is a United Pharma acquisition finally going to materialize? EFG Hermes-owned RX Health Care Fund is expected to sign a final agreement to acquire 80% of United Pharma in a transaction worth more than EGP 366 mn by the end of the month, sources close to the transaction told the local press. If the transaction goes through, United Pharma is expected also executed an EGP 100 mn capital increase through a rights issue to shareholders, which would then see RX’s stake in the company rise to 85%. All proceeds from the acquisition and subsequent capital increase will be used to expand United Pharma’s production facility, including adding new production lines and manufacturing new products.

Background: United Pharma has nearly beens old a number of times in the past two years. In January 2018, it rejected ACDIMA’s EGP 320 mn offer on the grounds that it undervalued the company, which it estimated at EGP 600 mn. A year earlier, three Saudi and local investors also made an offer for 100% of the company, which United Pharma refused because it did not want to sell it entirely.

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