REG - Beximco Pharma. - Clarification on Writ Petition

Beximco PharmaceuticalsAnnouncement

30/09/2024 07:15

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RNS Number : 1965G  Beximco Pharmaceuticals Ltd  30 September 2024

30 September 2024

 

BEXIMCO PHARMACEUTICALS LIMITED

 

Clarification on Writ Petition filed in Bangladesh in which Beximco
Pharmaceuticals is cited as one of several Respondents

 

Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM
Symbol: BXP, LEI No.: 213800IMBBD6TIOQGB56) today provides clarification
regarding a recently filed Writ Petition with the Supreme Court of Bangladesh
by a Mr. Masood Sobhan, a citizen of Bangladesh and practicing lawyer of the
Supreme Court of Bangladesh as the Petitioner. The Writ Petition has been
filed as a Public Interest Litigation. This Writ Petition includes Beximco
Pharmaceuticals, in addition to the Bangladesh Bank, The Bangladesh Ministry
of Finance, and Salman F. Rahman as separately listed and distinct
Respondents. Inter alia, the writ asks the Court to direct the Bangladesh Bank
to "appoint a Receiver to manage the companies of  the  Beximco Group of
Companies".

 

This civil action is in addition to the already noted allegations of which
Beximco Group has been accused, following a preliminary review by the
financial crime unit of the Bangladesh CID, of taking loans from seven banks
through fraud over a number of years. As per the Company's announcement of 3
September 2024, Beximco Pharmaceuticals is not a party to any of the loans of
Beximco Group.

 

On 5 September 2024, The Supreme Court of Bangladesh issued an Interim Order,
pending a hearing on this Writ Petition, which inter alia directed The
Bangladesh Bank to "appoint a Receiver to manage the companies of Beximco
Group of companies for a period of 06 (six) months from date …".

 

Beximco Pharmaceuticals, has sought legal advice, wherein it has been opined,
among other things, that:

 

"The interim order directing appointment of a receiver for the Beximco Group
of Companies does not in our opinion affect BPL as BPL is a publicly listed
company with both institutional, retail and international shareholders and
does not in any way connected or can be regarded as a 'Beximco Group of
Companies.'"

 

Beximco Pharma has total shares in issue, represented by ordinary shares and
GDRs, of 446,112,089. Of this total, only 10.02% is held by associated
companies and 4.07% held by Directors/Sponsors. As such, Salman F. Rahman (who
holds only a 2.04% direct holding in the Company) in no way has a majority
shareholding in Beximco Pharmaceuticals.

 

Separately the Company argues that the Petitioner also lacks the Legal
Standing to prosecute this Writ Petition in the Supreme Court.

 

The Company will take all necessary action to establish its factual and legal
position with regards to the Writ Petition including whether: (i) Beximco
Pharmaceuticals has been wrongly made a party to this suit, (ii) the interim
order cannot be applied to Beximco Pharma.

 

Further announcements will be made in due course.

 

 

For further information please visit www.beximcopharma.com
(http://www.beximcopharma.com) or enquire to:

 

Beximco Pharma

S M Rabbur Reza, Chief Operating Officer

Tel: +880 2 58611001, Ext.20111

 

Mohammad Ali Nawaz, Chief Financial Officer

Tel: +880 2 58611001, Ext.20030

 

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Andrew Emmott / Adam Dawes

Tel: +44 (0) 20 3368 3551 / 3555

 

SP Angel Corporate Finance LLP (Broker)

Matthew Johnson

Tel: +44 (0) 20 3470 0470

 

FTI Consulting

Simon Conway / Victoria Foster Mitchell / Sam Purewal

Tel: +44 (0) 20 3727 1000

 

Notes to Editors

 

About Beximco Pharmaceuticals Limited

 

Beximco Pharma is a leading manufacturer and exporter of medicines based in
Bangladesh. Since its inception in 1976, the Company remains committed to
health and wellbeing of people across all the continents by providing access
to contemporary medicines. Company's broad portfolio of generics encompasses
diverse delivery systems such as tablets, capsules, liquids, semi-solids,
intravenous fluids, metered dose inhalers, dry powder inhalers, sterile
ophthalmic drops, insulins, prefilled syringes, injectables, nebuliser
solutions, oral soluble films etc. The Company also undertakes contract
manufacturing for multinational and leading global generic pharmaceutical
companies.

 

Beximco Pharma′s state-of-the-art manufacturing facilities are certified by
global regulatory authorities of USA, Europe, Australia, Canada, GCC and Latin
America, among others and it has a geographic footprint in more than 50
countries. More than 5700 employees are driving the company towards achieving
its aspiration to be among the most admired companies in the world.

 

 

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