Some foreign investors and the directors of May & Baker Nigeria Plc have started preliminary talks on the possible acquisition of strategic equity stake and technical partnership in May & Baker Nigeria as the Nigerian healthcare company seeks to leverage on its World Health Organisation (WHO)-certified pharmaceutical manufacturing complex to attain local dominance and attract global drug contracts.
A top management source in the know of the foreign investment and partnership discussions said there were about two or three prospective foreign investors and technical partners under consideration, although no definitive and material agreements have been reached.
Listing requirements at the Nigerian Stock Exchange (NSE), where May & Baker Nigeria Plc is listed, requires quoted companies to provide any material information on possible changes that may impact shareholding structure, balance sheet and earnings.
The source said the exploratory talks have made good progress and the evaluated interests appeared to be strong and could lead to tangible decisions and announcements in the first half of 2016.
The source said the directors of May & Baker Nigeria had clearly defined that any foreign investor must not only be willing to provide amenable capital to support the operations of the company but also the technical know-how to enhance the current drive to make May & Baker Nigeria’s multi-billion naira, WHO-certified pharmaceutical manufacturing complex in Ota, Ogun State, the hub of pharmaceutical manufacturing in sub-Saharan Africa (SSA).
According to the source, the board of May & Baker Nigeria wants to deepen the company’s local product manufacturing by entering into technical partnership with foreign companies to produce specialize drugs in Nigeria for the domestic and regional markets.
The foreign investment deal may come as part of a combined bid to raise equity funds for May & Baker Nigeria, which has been encumbered by financial leverage that arose from bank loans taken to finance the Ota manufacturing complex, otherwise known as The Pharma Centre. Already, the board of directors of the company has secured shareholders’ approval to raise N3.2 billion in new equity fund. The board has already indicated that the new equity raising will include a rights issue, to compensate shareholders who have stood by the company.
Investors’ interests in May & Baker Nigeria have increased in recent months as the pharmaceutical company completed a major stage of its WHO certification and pre-qualification process with the issuance of the WHO’s current General Manufacturing Practice (cGMP) to the company. May & Baker Nigeria is one of two quoted companies that had received the high-profile certification.
The company is currently in the process of completing the pre-qualification of its products The Pharma Centre, which will enable it to export its products globally and to also participate in multi-billion Naira donor-funded drug manufacturing and supply contracts in Nigeria. It will also be able to undertake global contract manufacturing for other global pharmaceutical companies. The Nation
