US Co Eyes Bulgarian Pharmaceutical Market

Actavis is the biggest manufacturer of legal drugs in Bulgaria. File photo

Watson Pharmaceuticals, a US generic drugmaker, is in talks to acquire Actavis, which is the biggest producer of medications in Bulgaria.

The information about the upcoming sale was reported by Financial Times. According to the publication, the price would be around EUR 4.5 B.

Actavis owns the pharmaceutical factories in the towns of Troyan and Dupnitsa, which were privatized in 1999, and the antibiotics plant in the city of Razgrad, which was privatized earlier. After the deals in Bulgaria, the company had about 20 more acquisitions across the globe.

The article reminds portions of the complicated saga with the investments of Irish billionaire, and Iceland's richest man, Bj?rgolfur Thor Bj?rgolfsson, who in 2007 had taken Actavis private, "in a deal that gave the business an enterprise value of EUR 4.8 B. The transaction was financed by Deutsche Bank, which in 2008 renegotiated more than EUR 3 B in debts with Actavis and remains a creditor."

According to FT, the deal could be concluded over the next 3-5 weeks and the price would be fully paid in cash while some of the bank loans could be converted into equity.

Deutsche Bank, which controls the company, holds EUR 3.5 B of Actavis.

In June 1999, "Balkanpharma," in which Deutsche Bank was a main investor, paid 55% from "Troyapharm," 55% from "Pharmacia," and 51% of "Antibiotic" with prices respectively USD 7.4 M, USD 11 M and USD 5.7 M.

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