The Management Board and major shareholders of Sanitas AB (“Sanitas” or the “Company”) initiated a strategic review in April 2008, to consider various strategic options available to the Company to enhance and realise shareholder value. This review has concluded that the Company’s stand-alone operating plan represents the best way to enhance shareholder value for the medium term. This conclusion was reached based on a thorough analysis of the pharmaceutical industry, current macroeconomic conditions and available strategic transaction alternatives. Merrill Lynch International acted as financial adviser to the Company in the strategic review.
Sanitas’s financial performance remains strong and the Company has a strong balance sheet. Sanitas has attractive niche positions in its key markets and good growth prospects. The main focus of the Company in the medium term remains therefore its pipeline of new products and further growth in its current markets.
The Company also announces that legal documentation has been executed regarding a transaction whereby AB Invalda (“Invalda”) would sell a 20.3% interest in the Company, to Baltic Pharma Limited, an investment vehicle for funds managed by Citi Venture Capital International (“CVCI”). Other investment funds managed by CVCI had previously made an investment in the Company as a result of which they hold 17.1% equity interest in the Company. Invalda intends to retain a 25% interest in the Company going forward and will use the proceeds from this transaction to reduce its borrowings. Closing of the transaction is subject to certain conditions, including obtaining required regulatory approvals, and is expected to be completed by the first quarter of 2009. The transaction results in no change to the total ownership held by the group of controlling shareholders of Sanitas (i.e. Invalda, CVCI-advised entities and funds managed by Danske Capital and Firebird Management LLC), which jointly continue to hold more than 80% of the Company.
Merrill Lynch International acted exclusively for the Company in relation to the strategic review and for no one else and will not be responsible to anyone else for providing the protections afforded to its clients.
About Sanitas
Sanitas is a group of companies specializing in manufacturing, development and sales of generic pharmaceuticals. Sanitas group has modern manufacturing facilities in Lithuania, Slovakia and Poland and produces a variety of medicines in different formulations including
tablets, capsules, injectables and ointments. The Company markets its products in the fast-growing pharmaceutical markets of Central and Eastern Europe, Russia and Ukraine.
About Invalda
AB Invalda is one of the largest Lithuanian holding groups, which actively manages its investments. Activities of Invalda cover Lithuania, Ukraine, Latvia, Poland, Slovakia and other European countries, where the company constantly seeks development opportunities. The main activity of AB Invalda is investment in promising businesses and optimization of their strategies with the aim of increasing shareholder value.
About CVCI
CVCI, a business unit of Citi Alternative Investments, is a leading private equity investor and investment adviser in developing markets. With more than forty investment professionals and offices in London, New York, Hong Kong, New Delhi, Mumbai and Tokyo, private equity funds advised by CVCI manage over US$7 billion in investments and committed capital. Since 2001, private equity funds advised by CVCI have made investments principally in Asia, Central and Eastern Europe and Latin America and have been a leading private equity investor in the generic pharmaceutical sector in developing markets.