How are the conversations between Hypera and EMS

EMS owner is more flexible and Sanchez would agree to keep no more than 50% of the combined company

Conversations between Hypera, the pharmaceutical giant owned by businessman João Alves de Queiroz Filho, or Júnior, with Carlos Sanchez, from the NC group (which owns EMS), are still hampering the valuation, said a source.

As Pipeline anticipated in July, the entrepreneurs opened up talks about a business combination. Júnior had also approached Maurizio Billi’s Euroforma, months earlier, in negotiations that did not progress.

A source close to Hypera said that Sanchez’s group is more flexible and the businessman would agree to keep a maximum of 50% of the combined company. On the other side of the table, however, the complaint is that Junior defends the thesis that his company will double in size in a year, but Sanchez did not buy that narrative, another source said. The two haven’t talked for at least a month.

Junior owns 21.38% of the company and, with the Mexican holding Maiorem, forms the controlling group of Hypera, with 36%. They have a shareholders’ agreement, but there is no poison pill in the company’s bylaws.

Hypera is advised by Bank of America (BofA). Eurofarma hired BTG Pactual and the NC group is advised by Itaú BBA and Safra. In the column of Lauro Jardim, from O Globo, the journalist reported that pharmaceutical company Aché hired Citi to evaluate the business.

At Faria Lima, investment banks work to make the operation work. However, there is a lot of skepticism about a deal between the two market giants.

Sought, Hypera Pharma again denied that it has hired a bank to advise it in the sale process and that there are negotiations in this sense. Eurofarma informed that “it focuses its M&A strategy primarily on the acquisition of international assets and is unaware of any initiative by competitors to form an alliance.” Aché doesn’t comment. EMS also does not comment.

Source: Value Pipeline