Zentiva has announced that Ceska Pojistovna and related parties acting together, the PPF group, have increased their share in Zentiva to 12.295%. Ceska Pojistovna bought the stock from Warburg Pincus in the two placements on September 20 and 21. Warburg Pincus sold a total of 10.7m shares in Zentiva in the two placements, reducing its shake to 19.6%. Zentiva’s free float is estimated at 57%.
Zentiva is holding an EGM today at 10:00am CET at Schipol Airport to approve the acquisition of a 51% stake in the No.1 Romanian generic drug producer Sicomed for USD 102mn. We expect the transaction to be approved. Based on the acquisition and implied restructuring of Zentiva’s balance sheet, we have upgraded the stock to Buy with a target price of CZK 1,334/share.