According to a report published by Reuters, French pharmaceutical firm Sanofi SA (NASDAQ: SNY) has received approval to list its drug ingredients business, EUROAPI. The listing is expected to take place after the company’s shareholders approve the same on May 3.
The company plans to retain a 30% stake and the French government will buy a 12% stake for up to €150 million after its listing in France. The remaining 58% will be distributed among Sanofi’s shareholders in the form of dividends, along with a cash payment of €3.33 per share.
The Paris-based company’s shareholders will get one share of EUROAPI for every 23 SNY shares.
Further, Karl Rotthier, the CEO of EUROAPI, and L’Oreal (LRLCY), Sanofi’s largest shareholder, have agreed to a lock-up period of one year after the listing.
About EUROAPI
EUROAPI manufactures active pharmaceutical ingredients (APIs) for medicines and has six production sites in France, Britain, Italy, Germany and Hungary. The business accounted for 50% of Sanofi’s revenues last year and is expected to generate around €1 billion in revenues this year.
About Sanofi
Sanofi is engaged in the research and development, production and sale of prescription as well as over-the-counter pharmaceutical drugs. It covers seven major therapeutic areas: cardiovascular, central nervous system, diabetes, internal medicine, oncology, thrombosis and vaccines.
Stock Rating
Based on a single Buy, SNY has a Moderate Buy consensus rating. The only analyst covering the stock did not provide a price target.
Meanwhile, the healthcare company is expected to report its first-quarter results on April 28.
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