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Sanovel close to agreeing sale of minority stake: Bloomberg
Posted on Friday, 29 November 2019 09:13
Sanovel IIac Sanayi ve Ticaret, a Turkish manufacturer of pharmaceuticals, is nearing a sale of 30.0 per cent of its share capital to a group of investors in a deal that could be worth around USD 200.00 million in cash, people close to the matter told Bloomberg.

According to these sources, Morgan Stanley is among the interested investors, with Metric Capital Partners also said to be part of the consortium looking to pick up the interest.

The people, who asked not to be named as the situation is still confidential, suggested an announcement could be made as soon as next week.

Morgan Stanley, Metric and Sanovel all declined to comment when contacted by Bloomberg.

The Istanbul-based group makes anti-inflammatory, anti-asthmatic and antibiotic medications and is billed as one of the top ten pharmaceutical players in Turkey.

Over the years Sanovel’s production facility has been inspected by the German and Spanish health ministries and has been given approval to manufacture products for foreign markets.

In 2018 it was given the green light from the Food and Drug Administration, one of the largest health authorities in the world, which was a critical step for the business to export to the US.

Last year, Bloomberg cited three sources familiar with the situation as saying Sanovel’s owners have hired Barclays to look into a sale of the company after a deal with Dubai’s Abraaj Group collapsed.

These insiders noted a disposal of all or part of the group is being considered and a transaction could be based on an enterprise value of USD 800.00 million.

Zephyr, the M&A database published by Bureau van Dijk, shows this would be the first deal to target a Turkish pharmaceutical and medicine manufacturer announced in 2019 to date.

The sector has featured in 2,455 transactions announced worldwide since the start of the year, the largest being Bristol-Myers Squibb’s USD 74.00 billion takeover of US-based Celgene.

Allergan, Mylan, Celgene’s OTEZLA assets and Nestle Skin Health, were each targeted in deals worth more than USD 10.00 billion in 2019 so far.

© Zephus Ltd