Philab buys majority stake in local firm

PHILAB Holdings Corp. is acquiring an approximately 67% stake in local pharmaceutical firm Sydenham Laboratories, Inc. (SLI) for P390.6 million.

In a disclosure to the stock exchange on Tuesday, Philab said its board of directors has approved the purchase of 625,000 secondary common shares in SLI, representing 33.33% of its resulting outstanding capital stock, at P46.62 each from various SLI shareholders.

Philab will also subscribe to 625,000 primary common shares from the unissued capital stock of SLI, also representing 33.33% of the latter’s outstanding capital stock, at P46.62 each.

The total consideration for the SLI shares is at P390.6 million.

In turn, Philab will issue up to 48.828 million common shares at P4 each out of its unissued authorized capital stock to SLI, as well as shareholders who will be selling SLI secondary shares.

The listed firm will pay P137.01 million of the purchase price in cash, while the remaining balance will be offset by the Philab shares it will be issuing to SLI.

The subscription price for the Philab shares will have to be confirmed by the Securities and Exchange Commission, where the company will be filing an application for confirmation of valuation.

Once the SEC confirms the valuation, Philab will execute definitive agreements for the deal before closing.