Jakarta, CNBC Indonesia – Swiss-American cigarette and tobacco producer Philip Morris International (PMI) took over the pharmaceutical company that manufactures asthma inhalers, Vectura on Thursday (16/9/2021), for £1.1 billion, or about US$1, 5 billion.
The acquisition value is equivalent to Rp. 21.45 trillion, assuming an exchange rate of Rp. 14,300/US$).
The parent of PT HM Sampoerna Tbk (HSMP) won the support of the UK company’s shareholders to escape the concerns of healthcare professionals.
Vectura shareholders decided to take up the 165 pence per share offer from PMI, with nearly 75% in favor of the deal.
The purchase of shares in the inhaler manufacturer, which is listed on the London Stock Exchange, is part of a long-term plan to develop a “smoke-free” product and turn it into a “health” company.
But Phillip Morris’ move has irked health groups such as Asthma UK and the British Lung Foundation who have questioned whether tobacco manufacturers should have a company that can cure respiratory illnesses caused by smoking.
Phillip Morris Chief Executive Jacek Olczak believes that acquiring Vectura is one of the most important parts of his strategy to achieve his vision of marketing “Beyond Nicotine” products.
He said in the Telegraph last month that opponents were “not interested in progress” and accused them of still resolving longstanding problems with the tobacco industry.
Olczak said that Phillip Morris would provide Vectura scientists with the resources and expertise to achieve his vision and generate an estimated $1 billion in net revenue from “Beyond Nicotine” products by 2025.
Meanwhile, Asthma UK and the British Lung Foundation said they had sent a letter aimed at urging local authorities to look into any issues of conflict of interest. The letter was co-signed by 35 charities, public health experts and doctors.
“There is now a very real risk that Vectura’s deal with a major tobacco company will cause the tobacco industry to exert undue influence on UK health policy,” said Sarah Woolnough, Chief Executive Officer of Asthma UK and the UK Lung Foundation. Reuters.
“We ask the government to stick to its commitments to the World Health Organization’s Framework Convention on Tobacco Control to prevent this from happening,” Woolnough added.
Phillip Morris claimed to have received permission for the regulation. However, after the public tender process is carried out, the bid is now irrevocable.
The company has also accepted the 50% threshold to make its offer unconditional, but it has not yet reached the 75% stake required to write off its stake in Vectura.
Phillip Morris said it would extend its offer until September 30. This is done to give Vectura shareholders an opportunity to accept their proposals.
(chd / chd)
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