Zentiva preparing to pay $200m for Sicomed

Drug maker Sicomed Bucharest on Tuesday officially confirmed the existence of negotiations by its majority shareholder, the Venoma Holdings investment vehicle, for the sale of its majority stake.

The talks are being conducted with Czech drug maker Zentiva, which is ready to pay 200 million dollars (161 million euros) for all the Sicomed shares.

Despite this, Sicomed warned: “There”s no certainty a final agreement will be reached.”

Venoma Holdings owns around 51% in the Romanian drug maker and is controlled by two investment funds – the Romanian Post Privatisation Fund, managed by GED Capital Development; and Black Sea Fund, managed by Global Finance.

“Venoma has notified us that its shareholders are now examining the offer in the light of the strategic alternatives available to them. Although the talks, which are expected to continue until September 16, have reached an advanced stage, there is no certainty a final agreement will be reached,” Sicomed said in an announcement on the Bucharest Stock Exchange requested by the National Securities Commission (CNVM).

The deal could take place either through the sale of Venoma by the investment funds that own it, followed by a tender offer on the BSE; or by running a tender offer during which Venoma would sell its shares.

According to information on the market, Venoma put the controlling interests in Sicomed up for sale a few months ago, in which a number of pharmaceutical companies, mainly from Central and Eastern Europe, expressed an interest.