Japanese Taisho seeks to raise stake in DHG Pharma to 25 pct

By Minh Son   June 6, 2018 | 02:46 am PT
Japanese Taisho seeks to raise stake in DHG Pharma to 25 pct
DHG's headquarter in southern Vietnam. Photo courtesy of DHG
Taisho will offer to buy 650,000 shares from the leading drug maker of Vietnam.

Taisho Pharmaceutical, a subsidiary of Japanese Taisho Pharmaceutical Holdings Co., Ltd. has just registered to buy an additional 650,000 shares or 0.5 percent stake in Hau Giang Pharmaceutical Joint Stock Company (HoSE: DHG).

The transaction is set for June 6-7 by methods of order matching and negotiation. DHG’s closing price of VND104,000 (US$4.6) per share last Friday would make Taisho’s acquisition worth VND67 billion ($2.95 million).

If the deal is successful, Taisho will raise its holdings in DHG to around 25 percent.

Earlier, the Tokyo-based firm became the biggest foreign investor at DHG after acquiring 24.44 percent of its stake from 34 foreign shareholders in 2016.

It is also DHG’s second largest shareholder, following State Capital Investment Corporation (SCIC), which owns 56.6 million shares, an equivalent of 43.3 percent.

According to a report by global research firm Business Monitor International, Vietnam’s pharmaceutical industry grows at an average rate of 16 percent between 2015-2018 with sales hitting $10 billion.

However, at the moment, the country still imports about 55 percent of domestic drugs needs, especially patented drugs.

Vietnam imported over $1 billion worth of drugs in the first five months of this year, down three percent over the same period last year, according to the General Statistics Office.

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