CYPRUS: Foreign investor seeking to buy Remedica

Remedica, the Cypriot pharmaceutical company, may soon find itself under new ownership as announced by sole shareholders South African company Ascendis.

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The debt-laden maker of multivitamins, probiotics and pet nutritional supplements received an unsolicited offer for Cyprus unit Remedica.

In an announcement issued to the Cyprus Stock Exchange, the company said that the development may affect the price of its shares and advised investors to take this into account when conducting operations related to the company's stock.

Indeed, shortly after the announcement, Ascendis’ shares recorded an increase in their value.

According to daily Phileleftheros’ sources, the offer for Remedica was made by a foreign investor, while South African media are reporting that Remedica generates 32% of Ascendis’ profits.

South African media have reported that the Coast2Coast investment fund, Ascendis’ major shareholder, is in financial straits failing to meet its debt obligations, while banks have sold shares acquired in a debt-to-asset swap.

According to Philelelftheros, Ascendis in September last year had announced the sale of one its main businesses which was generating 12% of its income.

Ascendis Health, which is listed on the Johannesburg Stock Exchange, bought Remedica back in 2016 for around €260 mln, as part of an aggressive takeover strategy that seems to have contributed to creating liquidity issues.

Remedica, founded in 1960 by Christakis Pattichis, develops, manufactures and sells over 300 pharmaceutical products in 100 countries, mainly in emerging markets, including the Middle East, Asia, Africa and South America.