The largest Polish drug manufacturer Polpharma is working on a possible takeover of the Czech rival Zentiva worth $ 4 billion and is looking for investors to join this offer in exchange for a minority stake, Reuters reported.
Talks between Polpharma and potential partners are at an early stage, and the Polish company has not yet decided how to construct a joint bidding mechanism, Reuters sources said on the condition of anonymity, warning that no transaction was certain.
A representative of Polpharma said that “is constantly looking for acquisition targets and partnership opportunities in its own and new territories,” but declined to comment on any specific transaction.
Polpharma’s move came after Advent rejected banks’ proposals for Zentiva’s initial public offering (IPO) last year as subscription interest declined in the second half of last year, Reuters sources say.
Polpharma needs a private investment company to help finance the offer. The offer would cost Zentiva between three and 3.5 billion euros, or up to four billion dollars. According to sources, the Polish company hired the American investment bank JPMorgan to select potential investors.