KARACHI: AGP Limited, along with its parent Aitkenstuart Pakistan, has formed a special purpose vehicle (SPV), to acquire a select product portfolio of Sandoz AG.
“The Board of Directors has authorized AGP Limited to participate with its parent company Aitkenstuart Pakistan through a special purpose vehicle (SPV) setup by Aitken for the purpose of acquisition of a selected portfolio of products which are commercialized in Pakistan under the Sandoz brand including some widely used brands such as Azomax, Zatofen and Amoxi-Clav, which are owned by Sandoz AG of Switzerland,” a bourse filing said on Thursday.
AGP Limited would have up to 65 percent stake in the proposed SPV, which will acquire the brands through an optimal capital structure comprising equity and debt in the ratio of 30:70. Further details could not be known.
The acquisition of brands is likely to increase the market share, bring operational and logistical synergies and enhance the product portfolio of AGP Limited.
The arrangement would also increase company’s revenues and profitability as the consolidated topline is expected to increase by Rs3.0 Billion within 12 months of completion.
AGP began its commercial operations in 1989 as an independent pharmaceutical manufacturing company in Karachi, Pakistan. It has steadily grown through manufacturing and marketing products under licensing arrangements with many companies of international repute and also through manufacturing and marketing its own brands.
AGP Limited posted a net profit of Rs1.16 billion for the nine-month period ended September 30, 2020, up 10 percent from the profit of Rs1.06 billion in the same period previous year.
“AGP has been successful in overcoming the challenges posed by Covid-19. The Company is now looking forward to continue its commitment towards delivering excellence by capitalizing on its core competencies, expanding production capacity, launching new products and pursuing inorganic growth opportunities, which would enable the Company to reach new horizons,” company noted in its last financial report.
www.agp.com.pk