Japan’s Taisho ups stake in Vietnam-listed DHG Pharma to 32%

Photographer: Krisztian Bocsi/Bloomberg

Japan’s Taisho Pharmaceutical Holdings has proposed to purchase an additional 7.06 per cent stake in Vietnam-listed DHG Pharma JSC, lifting its ownership to 32 per cent, according to a disclosure by the Ho Chi Minh City Stock Exchange.

The Japanese pharma company has planned to make a public offer of 9,232,647 shares with voting rights, which is equivalent to 7.06 per cent of the DHG Pharrma. At the proposed offer price of VND120,000 ($5.26) apiece, Taisho was said to spend about VND1.1 trillion ($47.7 million) to buy the shares.

Taisho is currently a major shareholder of DHG with over 32.6 million shares, equivalent to 24.94 per cent of the company’s charter capital. After the sale, the number of shares will increase to over 41.8 million, equivalent to 32 per cent of the charter capital.

Recently, Hau Giang Pharmaceutical has announced that the foreign ownership limit will be adjusted to 100 per cent since July 4. Previously, foreign holdings in DHG Pharma stay at 49 per cent, the maximum level overseas investors can collectively own in a Vietnamese pharmaceutical firm.

After the information, DHG shares rose to VND105,200 ($4.6) on July 5 trading session. Foreign investors were net buyers with nearly 200,000 shares of the pharma firm.

Following the purchase, Taisho, which has been present in Vietnam through an energy drink manufacturing plant, is still cementing its position as DHG Pharma’s second largest investor after the State Capital Investment Corporation (SCIC) with a 43.3 per cent interest.

Other shareholders include Vietnam-focused asset management firms, VinaCapital and Dragon Capital, Templeton Frontier Markets Fund and Templeton Emerging Markets Small Cap Fund.

In Vietnam, DHG Pharma, Traphaco and Domesco Medical have been favorable portfolio companies of financial firms like Dragon Capital, Mekong Capital, Deutsche Bank, Franklin Templeton and JP Morgan.

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