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Taisho Pharma acquires 24.5% of DHG

Released at: 12:47, 07/07/2016

Taisho Pharma acquires 24.5% of DHG

Photo: DHG

After $100 million acquisition Taisho becomes second-largest shareholder in DHG.

by Quynh Nguyen

Taisho Pharmaceutical Co., Ltd, a subsidiary of Japan’s Taisho Pharmaceutical Holdings, completed the acquisition of a 24.5 per cent stake in the Duoc Hau Giang Pharmaceutical JSC (DHG) on July 4.

It purchased 21,304,064 shares from 34 foreign shareholders for VND100,000 ($4.4) per share, outlaying nearly VND2.2 trillion ($97.7 million) in total.  

A representative from DHG’s PR Department confirmed with VET that following the acquisition Taisho will become the second-largest shareholder in the company after the State Capital Investment Corporation (SCIC), which holds 43.31 per cent. No further information on the acquisition was provided.

Most foreign shareholders that cashed out are linked to VinaCapital, Dragon Capital and other foreign funds, including Nikko New Age Asia Equity, Norges Bank, Fullerton VPIC Fund, and Portal Global Limited. The deal comes a month after DHG decided to pay a cash dividend of 35 per cent.

In 2015, DHG’s net revenue reached VND3.6 trillion ($160 million), representing 90.2 per cent of its annual plan and down 7.8 per cent against 2014. After-tax profit was VND593 billion ($26.3 million), up 11.04 per cent.

Shareholder Structure, March 2016


DHG’s profit for this year is expected to increase by more than 14 per cent compared to 2015. Ms. Pham Thi Viet Nga, CEO of DHG, said the company plans revenue of VND3.7 trillion ($164 million) and after-tax profit of VND679 billion ($30.1 million), up 14.2 per cent.

Taisho Pharmaceutical has total assets of JPY759 billion (about $7.1 billion). The drug manufacturer reported revenues of JPY290 billion ($2.8 billion) in 2015 and recorded after-tax profit of JPY22.47 billion ($219 million). It established the Taisho Vietnam beverage plant in 1999, in which it produces and distributes the Lipovitan energy drink.

According to Drug Administration of Vietnam under the Ministry of Health, Vietnam now has 718 licensed foreign companies in medicines and medicinal material production, of which 20 are from Japan, including Ajinomoto Pharmaceuticals Co., Ltd., Hisamitsu Pharmaceutical Co., Inc., Inabata & Co., Ltd., and Meiji Seika Pharma Co. Ltd.

Ms. Vu Thu Hang, Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City, said that average growth in Vietnam's pharmaceutical industry during the 2015-2020 period is expected to reach nearly 16 per cent annually.

In a commercial exchange program on the pharmaceutical industry between Vietnam and India in March, Mr. Ravi Uduy Bhaskar, CEO of the India Pharmaceuticals Export Promotion Council, said that Vietnam’s pharmaceutical market was worth up to $3.5 billion and it would attract a lot of foreign pharmaceutical enterprises in general and Indian pharmaceutical companies in particular.

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