Zentiva received a EUR 550m loan from a group of banks led by Citibank to finance its acquisition of Turkish Eczacibasi AS. Zentiva draw 3 and 5-year EUR and CZK loan facilities with floating interest rate and a premium ranging between 40 to 75 bps. Eczacibasi acquisition is expected to close on 2 July 2007, according to the company’s statement.
We see the news as neutral. Zentiva has already indicated to investors the approximate premium it will have to pay over the credit facilities. The indicated transaction close date suggests to us that the consolidation of Eczacisbasi can start from early July, in-line with the market's expectation including our forecast.