Ghanaian pharmaceutical giant Dannex has completed the acquisition of majority stake in Aryton drugs.
The deal which was sealed early December, 2016 after months of negotiations and regulatory processes had UMB Stockbrokers Limited as transaction advisors and Kimathy& Partners as legal advisors.
Per the deal Dannex now owns 53.47 percent of Artyon drugs after acquiring in excess of 114 million shares from Adcock Ingram International which owns 78.57 percent stake in Aryton drugs manufacturing limited.
It’s unclear how much Dannex paid for the stake, but Citi Business News has gathered a figure was arrived at after a negotiated settlement.
This is the second major acquisition Dannex has undertaken in a spate of two years.
In December 2014, Dannex announced it had acquired majority stake in Starwin Products Limited through a rights issue.
Dannex acquired 71.33 percent shares translating to 185,317,279 shares.
333,359,264 ordinary shares of no par value at GHS 0.03 per share in a ratio of 4.49 new shares for every one existing share held by qualifying shareholders of Starwin were offered.
The offer raised a total of GHS 5,567,099.16 representing 55.67% of the intended GH 10,000,777.92.
MD of Dannex, Yaw Opare-Asamoah speaking to Citi Business News on the acquisition of Aryton said ‘down the line we can look at the possibility of a merger which will obviously put the three companies together. We want to remain as a listed company we want to make sure that the shareholders will be listed on the stock exchange. So the merger will place all share holders on the stock exchange, the process to do that will be defined by support from the Ghana Stock Exchange and Security and Exchange Commission and obviously our consultants who are working with us’.
Dannex Limited is a wholly owned private limited liability company which was set up in May 1964 and is recognized as an industrial leader in the manufacture of high quality pharmaceutical drugs and chemicals in Ghana, apart from Ghana, Dannex has sales experience in other West African countries and competency in the production of tablets, capsules, liquids (syrups and suspensions), ointments and other Over-The-Counter (OTC) medicines for a variety of diseases and conditions.
While Starwin Products Limited and Aryton are also leading pharmaceutical companies in Ghana and the only two organizations in the industry to be listed on the Ghana Stock Exchange.
The Aryton share on the Ghana Stock Exchange as at 9am GMT was at 10 pesewas while Starwin was also at 4 pesewas at the same time.
Yaw Opare – Asamoah adds that Dannex hopes to by next year merge the three companies into one entity.
‘We believe that between six to eight months this transaction will be completed but prior to that there are internal arrangements that have to be made preceding the merger , so that has to go through the process first. We believe that the merger of these three companies will put us in a good place’.
By: Vivian Kai Lokko/citibusinessnews.com/Ghana