Amoun Pharma Said to Mull IPO as Alternative to Sale – Sources

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Amoun Pharmaceutical Co., one of the largest drugmakers in Egypt, is considering an initial public offering as an alternative to selling the company, three people with knowledge of the matter said.

Amoun’s shareholders are considering an IPO after some of the potential bidders for the company dropped out, one of the people said, asking not to be identified as the information is private. The company is still in sale discussions with one private-equity firm, another person said, without disclosing the name of the bidder. Emerging markets-focused private-equity firm Actis LLP is separately considering a pre-IPO investment in the company, two of the people said.

The drugmaker’s shareholders have hired Jefferies Group LLC to explore a potential sale, Chief Executive Officer Mohamed Roushdy said in May. The company’s owners include U.S.-based emerging market-focused private-equity arms of Capital Group Inc., Concord International Investments LP, and the Rohatyn Group, which bought Citigroup Inc.’s buyout business last year.

Buyout firms are stepping up acquisitions and exiting investments in Egypt amid improving markets and renewed political stability. Edita Food Industries SAE, part owned by London-based Actis, is close to hiring Goldman Sachs Group Inc. and EFG-Hermes Holding SAE for an initial public offering, three people familiar with the matter said in June.

Capital Group, Concord and Citigroup’s former buyout business bought Amoun, which makes both veterinary and human drugs, for about $450 million in 2006. A sale could value Amoun at $700 million to $800 million, people with knowledge of the matter said in July.

Representatives for Amoun Pharma, Concord International Investments and Capital Group did not respond to telephone and e-mail requests seeking comment. A representative for Rohatyn Group and a spokeswoman for Actis declined to comment.

Source: Bloomberg