SPIMACO increases direct ownership in Dammam Pharmaceutical Company to 100%

Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) announced on Sunday that the acquisition of an additional 15% of Dammam Pharmaceutical Company (Dammam Pharma), an 85%-owned subsidiary.

In parallel, SPIMACO, as part of its asset consolidation initiative, transferred 20% of Dammam Pharma from ARAC Healthcare Company (ARAC), a wholly owned subsidiary, to the parent company SPIMACO. Following this transaction, SPIMACO will directly own 100% of Dammam Pharma.

The company explained today on Tadawul that the value of the deal was 53.8 million riyals, and was as follows:

– SPIMACO Pharmaceuticals purchased a 15% stake in Dammam Pharma Company for 27,000,000 Saudi riyals, from the Moroccan pharmaceutical company Cooper Pharma.

– Transferring ownership interest through the purchase of SPIMACO of 20% in Dammam Pharma Company for 26,866,739 Saudi riyals, from ARAC Healthcare Company (a wholly owned subsidiary).

The company indicated the presence of related parties represented by the Moroccan pharmaceutical company Cooper Pharma and ARAC Healthcare Company (a wholly owned subsidiary).

And explained that the financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction:

Revenue

2020: SAR 42,987,742

2021: SAR 35,069,437

2022: SAR 22,046,539

Profit for the year

2020: SAR 1,785,924

2021: SAR 38,841

2022: (SAR 12,815,143)

As for the expected impact of the deal on the company and its operations, Dammam Pharma Company will be a wholly owned subsidiary of SPIMACO Company, and the financial statements will be consolidated for the benefit of the group instead of under the control of the other partner.

The Company explained also that share transfer from ARAC to the parent company SPIMACO will not have any impact on consolidated group financial results.