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April 1 (Reuters) – Sanofi (SASY.PA) plans to list its pharmaceutical ingredients subsidiary EUROAPI on May 6, saying the business should grow and improve profitability as a separate business.
After receiving approval from the French market regulator, the IPO on Euronext Paris is expected to take place shortly after Sanofi’s May 3 shareholder vote on the IPO, the giant said on Friday. French pharmaceutical.
Sanofi shareholders will receive one EUROAPI share for every 23 shares held in the parent company.
The company has confirmed its intention to retain a 30% stake in the company after listing while France will buy a 12% stake through state-owned bank EPIC Bpifrance for up to €150 million ( $166 million).
The group’s IPO plan with its Europe-based production network comes as the coronavirus pandemic and Russia’s attack on Ukraine have heightened concerns in the EU over the region’s dependency vis-à-vis imports of critical pharmaceutical ingredients.
“We can also read through the participation of BPIFrance the interest in terms of regional sovereignty and development. It is not only the interest of France. It is the interest of all of Europe”, has said Jean-Baptiste de Chatillon, financial director of Sanofi. analyst call.
L’Oreal (OREP.PA), Sanofi’s largest shareholder with a stake of more than 9%, agreed to a one-year lock-up period after the IPO, Sanofi added.
EUROAPI manufactures Active Pharmaceutical Ingredients (API) for medicines and relies on six production sites in Italy, Germany, Great Britain, France and Hungary.
Sanofi, which accounted for half of EUROAPI’s revenue last year, said in January that it expected the company to become the world’s second-largest API player with around 1 billion euros in revenue forecast for This year.
Sanofi CFO de Chatillon said EUROAPI’s estimated main profit margin this year of at least 14%, well below the 21% of EUROAPI’s closest rival, Siegfried AG (SFZN.S) in Switzerland, was a example of why Sanofi was not the best owner. .
“When you see peer performance, there’s room for improvement that we really believe is going to be realized,” de Chatillon said.
The CEO of the new company said Karl Rotthier said that as an independent group, EUROAPI would win more Sanofi rivals as customers, expand into high-margin drug development and consulting services, and reduce more costs.
The bulk of EUROAPI’s share capital, 58%, will be distributed to Sanofi shareholders through a dividend in kind, in addition to a cash payment of 3.33 euros per share previously proposed.
($1 = 0.9035 euros)
Reporting by Sarah Morland Editing by David Goodman and Louise Heavens
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