Globalpharma is a key manufacturer of pharmaceutical products under CGMP conditions including antibiotics, cardiovascular, anti-ulcerants, painkillers, food supplements, vitamins, anti-diabetics, respiratory products and anti-allergic formulations.
The transaction yielded a healthy IRR of 26 per cent over a 10-year period for the Dubai firm, said a senior official.
"Our investment in Globalpharma was well timed as we capitalized on the rapid growth in the pharmaceutical sector in the region. With the direction and support of DI, the management executed a successful strategy which has attracted a lot of strategic interest. This created the opportunity for our successful sell-down," remarked
The stake was divested to an investor group led by
Pursuant to the agreements entered into between DI and the investor group today, Globalpharma will be managed as a
"We believe that the new partnership being forged with
DI commercialized Globalpharma in 2003 and grew the company to make it a market leader in certain therapies. Globalpharma is currently registered in more than 14 countries across the GCC, Middle Eastern and neighbouring markets.
The company has been achieving healthy double-digit growth year-on-year since 2010.
Kalban pointed out that the investment case for Globalpharma was compelling, as it was to operate in a pharmaceutical market which was expected to have uninterrupted growth in the region over coming years, driven by favorable demographics and increasing GDP per capita.
"The penetration of generic drugs manufacturing, which has historically been low in in the region, is now gradually increasing to European levels. We started Globalpharma and brought the right team and the right product mix. It is now time for a firm such as
DI's divestment and agreement with
Globalpharma will be managed as a
According to Kalban,
"The divestment in Globalpharma is part of our strategy to continuously create value for our stakeholders. This strategic divestment and agreement with
"We are always on the lookout for strategic investments and divestments. Over the years, DI has always remained profitable with its prudent strategy aimed at boosting its profits and maintaining a high level of liquidity besides generating healthy returns for its shareholders," said Kalban.
"With a strong local footprint, Globalpharma will benefit from the wide-ranging
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