The two SIFs jointly own 54% in Biofarm. SIF Moldova (SIF2.RO) also owns 13.8% in the drug maker’s share capital. Thus, three SIFs have come to control almost 87% in Biofarm.
In the April 9-30 period, SIF Muntenia carried out a public takeover offer for a 45.72% stake in Biofarm, offering 152.7 million lei (EUR34 million). The offer was handled by Swiss Capital brokerage, with the price standing at RON0.305/share.
The offer came as the financial sector watchdog decided SIF Banat-Crisana and SIF Muntenia have the obligation to carry out a public offer at Biofarm, as the two companies own 54% in its stock. By law, an investor that goes beyond the 33% threshold in the capital of a listed company is forced to carry out a takeover offer for minority stakeholders. The offer became compulsory after SIF Banat-Crisana took over 5% in SIF Muntenia.
In the offer, investors sold 205.2 million shares to SIF Muntenia, with the total value of subscribed stock standing at RON62.58 million. Thus, the two SIFs increased their stake in Biofarm to 72.75%. SIF Moldova also holds a 13.8% stake. Thus, the three SIFs own almost 87% in the drug maker’s capital. The rest of 13% is held by several bourse investors.
After control was taken over by SIF Muntenia and SIF Banat-Crisana, Biofarm management proposed to no longer pay dividends to shareholders like in previous years and use part of last year’s profit to repurchase a stake of as much as 10% in stock to the end of canceling it.
Biofarm generated revenue of RON117.7 million (EUR26.6 million) and net profit worth RON25.6 million (EUR5.8 million) in 2013.
For 2014, the company has estimated revenue of RON128 million, net profit of RON21.7 million and planned investments worth RON36 million.
(English version by Catalina Apostoiu)