Boustead Acquires Pharmaniaga for RM534 Million

KUALA LUMPUR, June 11, 2010 – Boustead Holdings Berhad (Boustead Group) is set to strengthen its position in the pharmaceutical industry via the proposed acquisition of Pharmaniaga Berhad (Pharmaniaga), a member of UEM Group Berhad (UEM).

The proposed exercise will involve the Boustead Group acquiring 86.81% of the issued and paid-up share capital of Pharmaniaga from UEM for a total cash consideration of RM534 million. Representatives from Boustead Group and UEM inked the relevant legal agreements at a signing ceremony today.

Three percent of the purchase consideration will be paid by the Boustead Group to UEM on the date of the sale and purchase agreement (SPA), while the remaining 97% will be paid 10 business days after the last of the conditions of the SPA is fulfilled.

According to YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, “We are confident this exercise will place us on a stronger footing to further build our pharmaceutical arm which is a part of the Group’s Manufacturing and Services Division. Boustead Group’s Idaman Pharma Manufacturing Sdn Bhd already has a presence in the growing healthcare industry.”

“We also expect to benefit from cost improvements as a result of the streamlining and optimisation of manufacturing facilities, production capacities and cross fertilisation between the Boustead Group and Pharmaniaga plants. Furthermore, we plan to expand our pharmaceutical business by seizing opportunities in ASEAN’s biggest market, namely Indonesia, via Pharmaniaga’s existing logistics operations network there.”
Pharmaniaga is the largest integrated local healthcare company in Malaysia and is listed on the Main Board of Bursa Malaysia Securities. Its core businesses include generic pharmaceuticals manufacturing and R&D, as well as warehousing and distribution of pharmaceutical and medical products.

Upon the completion of the acquisition, the Boustead Group will undertake a mandatory general offer (MGO) to acquire the remaining shares of Pharmaniaga at an offer price comparable to the terms of the SPA.

YBhg Tan Sri added, “Although we are bound to undertake a MGO, we have no intention of taking Pharmaniaga private. We intend to maintain its listed status as this is in line with our overall corporate strategy of retaining a select and valuable number of entities as public listed companies.”

Pharmaniaga, with a strong and stable recurring income, currently has a presence in 38 sites across Malaysia and internationally, including Indonesia and Vietnam.

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Boustead Holdings Berhad
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group’s operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading and manufacturing & services. As at 31 March 2010, Boustead Holdings Berhad’s paid-up capital is RM466 million, while its shareholders’ funds stand at RM4 billion. Market capitalisation currently is in excess of RM3.3 billion.

Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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