PTT invests in Taiwanese drug firm
Thai energy giant continues diversification drive as part of consortium in $475m deal
published : 26 Nov 2021 at 18:48
PTT Plc, the majority state-owned energy conglomerate, is preparing to expand further into pharmaceuticals as part of a consortium acquiring a unit of the drugmaker Alvogen, the parent of Taiwan-based Lotus Pharmaceutical.
A consortium of PTT and the Icelandic investment fund Aztiq have agreed on a US$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 would 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 company’s strategy to diversify its business away from fossil fuels. It has previously announced plans for electric vehicle production and the expansion of its Café Amazon coffee shop chain throughout Asia.
Aztiq is led by Robert Wessman, who is also chairman of Lotus Pharmaceutical and Alvogen.
PTT shares closed yesterday on the Stock Exchange of Thailand at 37 baht, down 75 satang, in trade wirth 2.55 billion baht.