Nigerian pharmaceutical company, Fidson Healthcare Plc said it has sold more equity stakes in the company to Ohara Pharmaceutical Co. Ltd.
Ohara is a Japanese healthcare company.
The stake sale was done through a rights issue which saw Fidson selling more stakes to Ohara. The Japanese company now holds to 21.57% in Fidson.
Fidson said in a statement that the strategic alliance is aimed at supporting the company in fulfilling its commitment to provide the Nigerian market with the latest healthcare products and services.
The deal involves a right issue which grew Ohara’s shares in Fidson Healthcare to 21.75%. This is a strategic capital and business alliance between both companies that will provide both the Nigerian and Japanese markets the latest products and services in healthcare.
Fidson had listed 586,360,250 ordinary shares by way of Rights Issue on Monday, July 1, 2019. These additional shares listed, according to a statement sent to the Nigerian Exchange Commission (NSE), arose from Fidson Healthcare’s Rights Issue of 750,000,000 ordinary shares of 50 kobo each at N4.00 per share on the basis of 1 new ordinary share for every 2 ordinary shares held as at December 28 2018.
“Given this growing population, there is no doubt that Nigeria is in urgent need of a rapid improvement in the standard of healthcare delivery. This can only be accelerated through modernization and technological intervention which the alliance with Ohara aims to deliver,” the company said.
The company shares are one of the lowest amongst its peers remaining at N4 per share in the last year
Fidson was only able to raise 78.18% of what it’s expected to raise. This makes the total issued and fully paid up shares of Fidson Healthcare to increase to 2,086,360,250 ordinary shares from 1,500,000,000 after the additional 586,360,250 ordinary shares. Nairametrics learnt the company raised N2.3 billion falling short of its N3 billion target.
Rights issue, which is also known as rights offer, gives existing shareholders of a company an opportunity or right to increase their shares by purchasing new shares. This enables existing shareholders to buy shares at a discount to the market price.
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Fidson Healthcare Plc
Part of the agreement will see Ohara enhance Fidson’s services and products by making pharmaceuticals and medical devices available to the company. These innovations and technology is expected to help Fidson compete better in the local healthcare.
According to the statement on NSE’s website, Fidson said, “The alliance holds promise as a significant growth driver for both companies, particularly as a major factor for the development of local pharmaceutical manufacturing in Nigeria.
“Given this growing population, there is no doubt that Nigeria is in urgent need of a rapid improvement in the standard of healthcare delivery. This can only be accelerated through modernisation and technological intervention which the alliance with Ohara aims to deliver.”
Fidson is prepared choice for GSK: GlaxoSmithKline Consumer Nigeria Plc had chosen Fidson as its preferred local contract manufacturing partner. GSK will thus transition the manufacturing of its respiratory and wellness products to Fidson from the third quarter of 2021. The firm, however, maintained that activities would continue at its Agbara plant till then.
About Ohara Pharmaceutical: Ohara is a pharmaceutical company focusing on the businesses of orphan drugs and generic drugs. The company focuses on the development and marketing of orphan drugs, mainly in the field of pediatric oncology and on the development, manufacturing and marketing of generic drugs that give extra consideration to the prevention of medical accidents. Ohara plans to further expand these businesses into emerging countries, primarily in the Asian and African regions.