Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

J&J, Novartis and Takeda in talks for Brazil's Hypermarcas - sources

Published 24/04/2017, 21:48
© Reuters. A sign marks a building on Novartis' campus in Cambridge
CSGN
-
NOVN
-
RKT
-
JNJ
-
BBDC4
-
HYPE3
-
COTY
-
4502
-
ONTEX
-

By Tatiana Bautzer and Guillermo Parra-Bernal

SAO PAULO (Reuters) - Johnson & Johnson (N:JNJ), Novartis AG (S:NOVN) and Takeda Pharmaceutical Co Ltd (T:4502) are in talks with the controlling bloc of Brazilian drugmaker Hypermarcas SA (SA:HYPE3) for a buyout, two people with knowledge of the matter said on Monday.

Families owning investment vehicles Igarapava Participações SA and Maiorem SA de CV, which hold a combined 34 percent of Hypermarcas, hired the investment banking units of Banco Bradesco SA (SA:BBDC4) and Credit Suisse Group AG (S:CSGN) to advise on a sale, said the sources, who requested anonymity because the matter is private.

None of the potential bidders have yet delivered binding proposals, one of the people said. The purchase of the stakes that the family of Brazilian billionaire João Alves Queiroz Filho -- who controls Igarapava -- and the Mexican investors in Maiorem would automatically trigger a buyout of minority shareholders.

Shares of Hypermarcas closed 3.8 percent up at 30.35 reais on Monday. The stock had extended gains after the Reuters report, rising more than 7 percent to an all-time high of 31.38 reais.

In a securities filing, Hypermarcas was informed by the investors in those vehicles about "the inexistence of any attempts to sell their stakes in the company."

The banks, J&J and Takeda did not immediately have a comment.

Novartis declined to comment.

Interest in Hypermarcas from foreign pharmaceutical behemoths comes after Brazil's largest listed drug producer spent the past two years focusing on over-the-counter medicines. Hypermarcas raised some $1.5 billion (£1 billion) from the sale of personal care brands to Coty Inc (N:COTY), Reckitt Benckiser Group Plc (L:RB) and Ontex Group NV (BR:ONTEX).

© Reuters. A sign marks a building on Novartis' campus in Cambridge

O Globo columnist Lauro Jardim reported on Sunday that owners of Igarapava and Maiorem were discussing a potential sale of their stakes with a number of unidentified foreign companies.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.