TEMASEK SELLING ZUELLIG STAKE?

Group in talks with advisers, may seek US$1b for 20pc equity interest, say sources

TEMASEK Holdings Pte is exploring a sale of its stake in Asian drug distributor Zuellig Pharma, said people familiar with the matter.

The Singapore state investment firm has been speaking with advisers about a potential sale of its 20 per cent stake in Zuellig Pharma, which commands vast pharmaceutical distribution networks in about a dozen Asian markets, according to the people.

Temasek may seek around US$1 billion (RM4.1 billion) for its holding in the Singapore-based company, said the people, asking not to be identified because the discussions are private.

Any deal would add to the US$28.4 billion of healthcare acquisitions in Asia announced this year, according to data compiled by Bloomberg.

The stake could draw interest from strategic buyers including Mitsui & Co, a Japanese trading house that has been expanding its healthcare operations, as well as private equity firms.

Zuellig Group was founded in 1922 by businessman Frederick Zuellig, who moved to Manila from Switzerland. The family trading house built out a number of different businesses and now has interests ranging from health care and pharmaceuticals to insurance and property, according to its website.

Zuellig Pharma had US$10 billion in sales in 2015.

Temasek first invested in Zuellig Pharma in 2007. Deliberations are at an early stage, said the people.

The death of family patriarch Stephen Zuellig in January fuelled speculation that his group could be put on the block.

Stefan Butz, chief executive officer of Swiss rival DKSH Holding AG, said in July he would be interested in starting talks if Zuellig Pharma officially came up for sale.

“It’s one of our key competitors, because they are particularly strong in the Philippines and in Indonesia and even other markets,” said Butz in response to an analyst question on an earnings conference call.

“We assume that they are dealing with the recent changes and making up their minds how they want to take the company forward,” he said. Bloomberg