Thai oil firm PTT expands pharma business with $475 mln Alvogen deal

Lotus Pharmaceutical

26/11/2021 11:27

BANGKOK, Nov 26 (Reuters) - Thailand's state-owned oil firm
PTT  PTT.BK  is set to expand further into pharmaceuticals as
part of a consortium acquiring a unit of drugmaker Alvogen, the
parent of Taiwan's Lotus Pharmaceutical  1795.TW , PTT said on
Friday.
    A consortium of PTT and Icelandic investment fund Aztiq have
agreed a $475 million purchase of Alvogen Emerging Markets
Holdings Ltd, which holds a 57.48% stake in Lotus, according to
Refinitiv Eikon.
    The Alvogen unit also owns Adalvo, a business-to-business
pharmaceutical firm based in Malta.
    PTT said it will have a 37% indirect shareholding in Lotus -
 which makes drugs to treat cancer, cardiovascular disease and
mental diseases - when the deal closes in the first quarter of
2022 and 60% of Adalvo. 
    In April, PTT bought 6.6% of Lotus for $50 million.
    The move is part of the oil and gas firm's strategy to
diversify its business away from fossil fuels. It has previously
announced plans in electric vehicle https://www.reuters.com/article/pttpcl-electric-idUSKBN2HV0YB
 production and the expansion of its coffee shop https://www.reuters.com/article/us-pttor-strategy-idUSKBN2BL0M2
 franchise, Café Amazon, in Asia.
    Aztiq is led by Robert Wessman, who is also chairman of
Lotus Pharmaceutical and Alvogen. 

 (Reporting by Chayut Setboonsarng; Editing by John Geddie and
David Clarke)
 ((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))