(By: Iris Gonzales, Philippine Star)
The Ayala Group has obtained the go-signal from the Philippine Competition Commission for its plan to expand its stake in the Generika Group of Companies.
In a disclosure to the local bourse yesterday, the conglomerate said its health arm Ayala Healthcare Holdings Inc. (AC Health) is increasing its stake in Generika to 52.5 percent from 50 percent previously.
The PCC approved the transaction on Monday.
The Generika Group consists of Actimed Inc., Erikagen Inc., Novelis Solutions Inc. and Pharm Gen Ventures Corp.
“AC Health, a wholly owned subsidiary of Ayala Corp., signed conditional agreements to subscribe to an additional 2.5 percent stake in each of the Generika companies, which will result in AC Health having 52.5 percent ownership thereof. Issuance of shares will only be made after the satisfaction of the conditions precedent,” Ayala said in its disclosure.
With the PCC approval, the parties are ready to proceed with the transaction, which will allow the Generika Group to raise additional capital for operations and store expansion.
“AC Health received the approval of the PCC on its proposed increase in stake in the Generika Group of Companies. With this, AC Health will proceed with the closing of the increase in the stake from 50 percent to 52.5 percent as regards Actimed Inc., Novelis Solutions Inc. and Pharm Gen Ventures Corp. The increase in the stake in Erikagen Inc. is still subject to certain conditions precedent,” it said.
AC Health signed conditional subscription agreements to subscribe to additional common shares of stock in Actimed (a total of 706,579 shares), Erikagen (42,105 shares), Novelis Solutions (155,921 shares) and Pharm Gen Ventures (65,807 shares), equivalent to 2.5 percent of each company.
The Generika Group is one of the pioneers in the retail distribution of quality generic medicines in the country with over 800 stores nationwide. It is the third largest player in retail pharmacy in the country by number of stores.
In July 2015, Ayala announced its venture in healthcare through the acquisition of a 50 percent stake in the Generika Group.
Generika is among the pioneers in the retail distribution of quality generic medicines in the country with over 500 stores nationwide. Businessmen Julien Bello and Teodoro Ferrer co-founded the drugstore chain.
Established in 2003, Generika promotes the use of generic drugs in the context of high prices of medicines in the country. Its first outlet opened in May 2004 in Montillano, Muntinlupa.
The article is first published HERE on June 5, 2019.