Japan’s Taisho Pharmaceutical Holdings Co., Ltd, intends to spend more than VND3.4 trillion purchasing 28.3 million shares of DHG Pharmaceutical Joint Stock Company, or DHG Pharma.

A DHG employee tests and experiments with pharmaceutical products at DHG Company – PHOTO: DHG

Taisho on February 28 announced the share purchase at an estimated price of VND120,000 each on its website.

In 2016, Taisho held 24.5% of the shares of DHG Pharma. The figure has since been raised to 34.99%. If the Japanese firm successfully secures the additional shares, equivalent to 21.7% of the chartered capital, DHG will become Taisho’s consolidated subsidiary.

After completing the transaction, potentially between mid-March and end-April, the total number of DHG shares held by Taisho will be 74.12 million, or 56.7% of the total number of issued shares.

The State Capital Investment Corporation is the largest shareholder of DHG Pharma, holding 43.31% of its shares.

As part of Taisho’s efforts to strengthen and expand its reach, it is focusing on investments in global markets, especially in Southeast Asia, in addition to its domestic business.

Taisho’s investment in DHG Pharma was aimed at furthering the pharmaceutical industry in the Asian market and gaining a firm foothold in the local market.

DHG Pharma earned VND3.89 trillion in revenue in 2018, down by 4% against the figure seen in 2017. Its posttax profit rose slightly to VND651 billion year-on-year.

The price of the shares of the Vietnamese firm is on the rise. In particular, one share was reportedly priced at VND85,000 on February 11, selling for VND119,000 on March 1.

SGT