The share price of Interpharma Public Company Limited (SET: IP) jumped 10.64% to THB20.80 at the opening bell on Friday after the announcement of PTT Public Company Limited (SET: PTT), Thailand’s state-owned oil and gas giant company, to acquire 20% shareholding stake in IP, through PTT’s subsidiary.
PTT announced on Friday that its Board of Directors and Board of Directors of Interpharma Public Company Limited (SET: IP) have approved the investment in IP’s newly issued shares via private placement by Innobic LL Holding Co., Ltd., which is a wholly owned subsidiary of Innobic (Asia) Co., Ltd. (Innobic) (a subsidiary of PTT) to acquire IP’s stakes at 20% of the total registered and paid-up capital on 19 May 2022.
The total investment value is approximately THB1,043 million. The agreements related to this transactions are expected to be signed within June 2022 and to be completed in the third quarter of 2022. Nevertheless, this would be subjected to the Securities and Exchange Commission and IP’s Extra General Meeting approval.
The collaboration aims for the further development of R&D and for the escalation in businesses across the country, covering a full range of healthcare products including innovative medicine, eye healthcare, nutraceuticals & supplement, Thai herbal medicines, and health food and drink.
According to the report, IP will use this THB1,000 million capital on 1) THB500 million on M&A and business expansion, 2) THB100 million on a standard plant 3) THB50 million on building cosmeceutical, 4) THB150 million on loan payback, and 6) THB100 million for working capital.