Consortium of investors headed by RDIF reaches deal on purchase of 28% of Alium pharmaceutical holding

Interfax, 09.07.2019

MOSCOW. July 9 (Interfax) - A consortium of investors consisting of the Russian Direct Investment Fund (RDIF), the Russian-Chinese Investment Fund (RCIF, created by the RDIF and the China Investment Corporation), and major Middle Eastern funds have acquired 28% of the shareholder capital of the pharmaceutical holding Alium, the RDIF said.

Alium is being created through a merger of the companies Obolenskoye and Binnopharm. When the merging procedures are complete, it will be one of Russia's ten biggest pharmaceutical companies in the commercial segment. Its holding will include about 200 medicines, and it will have four production complexes in Moscow and the Moscow region.

The RDIF and its partners will be open to attractive investment projects in the pharmaceutical industry in the future, as well, the head of the fund, Kirill Dmitriev, was quoted as saying.

In December 2018, AFK Sistema (MOEX: AFKS), together with VTB (MOEX: VTBR) and the management of the pharmaceutical company, acquired a stake in Obolenskoye. At the same time, Sistema announced its intention to merge the asset with Binnopharm, 74% of which it owns.

In April, the RDIF and its partners joined the consortium.

Following the deal, the consortium owns 28% in the new holding, VTB 46%, and Sistema 13%.

The merger should be complete by the end of the year.