Abu Dhabi's ADQ to buy Egypt's Amoun Pharmaceutical

The deal is in line with ADQ's efforts to expand its local and international healthcare portfolio

Abu Dhabi, United Arab Emirates, September 17, 2020.  The U.A.E. flag proudly waves at the Louvre Abu Dhabi on a Thursday afternoon.  Victor Besa/The National.
Section: Standalone
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Abu Dhabi’s holding company ADQ is buying Egypt’s Amoun Pharmaceutical Company as it continues to build its healthcare portfolio.

ADQ is buying Amoun from Canada's Bausch Health for $470 million (Dh1.73 billion).

The deal is expected to strengthen ADQ’s long-term healthcare and pharmaceutical strategy as it pushes to deliver a fully integrated value chain in the UAE, it said on Wednesday.

The transaction will be completed through a mandatory tender offer by ADQ for the total issued share capital of Amoun, including the less than 1 per cent stake held by minority shareholders. The deal is subject to regulatory approvals.

“ADQ aims to develop an integrated healthcare and pharma value chain through strategic investments and new ventures – both locally and internationally,” said Fahad Al Qassim, executive director of health care and pharmaceuticals at ADQ.

The investment in Amoun, which operates one of the largest drug plants in Egypt, also solidifies a commitment to a joint investment platform established by ADQ and the Sovereign Fund of Egypt.

“Together with SFE, we will work with Amoun’s leadership to expand on the company’s proven track record and market position on the pharma landscape,” said Mr Al Qassim.

Healthcare sector investment has picked up pace amid the Covid-19 pandemic, which provided a shot in the arm for drug makers, long-term care centres and diagnostic services.

The pandemic has hastened efforts to find solutions in the areas of diagnostics, drug research and production.

Set up in 2018, ADQ has a portfolio of companies in important sectors of Abu Dhabi’s non-oil economy such as tourism and hospitality, aviation, transport, logistics, industrial, property, media, health care, agri-foods and financial services.

Its portfolio includes the Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, healthcare provider Seha, insurer Daman, Abu Dhabi National Exhibitions Company and media companies Abu Dhabi Media and twofour54.

ADQ last month signed an agreement to merge its healthcare entities Rafed and Union71 with Dubai-based Pure Health to create a major healthcare support services provider.

ADQ will transfer its ownership of Rafed and Union71 to Pure Health in exchange for a stake in the merged entity.

ADQ acquired Pharmax Pharmaceuticals, a UAE-based generic drugs manufacturer, in January and said it would take a minority stake in India’s Biocon Biologics.

“Together with our recent pharma manufacturing investment in the UAE and India, our investment in Amoun will further enhance our pharma strategy with the ultimate aim of ensuring access to critical medicines, lowering the cost of medication for the general population and advancing new and innovative treatments that help improve people’s lives,” said Mr Al Qassim.

Established in 1998, Amoun is a leading manufacturer, distributor and exporter of branded drug and animal health products. It employs more than 2,500 people.