“Pharmacy chain 36.6” pharmacy and the A5 group agreed to merge

Moscow. January 18. The largest shareholders of PJSC “pharmacy chain 36.6” controlling shareholders and A5 Pharmacy Retail Limited (the parent company of the pharmacy chain A5) have reached a basic agreement on the merger of pharmaceutical companies.

As stated in the “36,6”, the Association is planned in the framework of additional issue of shares of “Pharmacy chain 36,6”, which will remain the parent company of the joint future group.

An additional issue will be conducted in the form of an open subscription. Part of the issue will be paid by depositing shares and/or shares of operating companies A5. The remainder will be offered for free acquisition the current shareholders “36,6” and other investors.

The price of shares issued during the additional issue, will be determined by the Board of Directors of “Pharmacy chain 36,6”. The final decision on the additional issue and its parameters will be taken at the extraordinary meeting of shareholders “36,6”, which will take place on 4 March.

The merger with A5 will become the first M&A transaction for “Pharmacy chain 36,6”. At the end of September of the current year the company completed the merger with the A. V. Group e, which also was part of the issue. The structure of the majority shareholders “36,6” Vladimir Kintsurashvili and Ivan Saganelidze Palesora Limited contributed as payment of shares 100% of shares of operating companies – LLC “Apteka-A. V. e” and LLC “Apteka-A. V. e-1”. As a result, the pharmacy chain A. V. e became part of the group of companies “36,6”, and the proportion rose to Palesora of 78.96%. Later Palesora reduced the share in “36,6” to 71,23%.

During the additional issue 5,375% of the shares of pharmacy company has also acquired “MDB Capital” (managing company for the long-term strategy of development of the assets of the co-owner of Moscow credit Bank Roman Avdeev), but within a month he sold the paper.

Later it became known that Avdeev bought 68,75% pharmacy group A5 (brands “A5”, “Standard” and “Formador”). Their shares sold Roman Buzdalin and Sergey Solodov, who owned shares through the Cyprus Confeyia Limited. Sources reported that in the future Avdeev plans to merge with A5 “Pharmacy chain 36.6”. In mid-January it became known that the Cypriot Confeyia received 5,81% “36,6”.

A. v.e Group and “36,6” developing brands “pharmacy chain 36.6”, “Gorzdrav”, A. v.e, “Old doctor”. At the end of June 2015 under the management of the group was 780 pharmacies. The group’s revenue in the first half of 2015 $ 16,101 billion.

At the end of 2014 A5 totaled 1,005 thousand pharmacies. In 2015, the company’s management planned to increase its network by 28% to 1,285 thousand points. A5 revenue by the end of 2014 amounted to 26 billion rubles, an increase of 27%. In 2015 this figure was expected to grow by 42% to 36.9 billion rubles.