STADA Arzneimittel AG (STDAF.PK,STDAY.PK) said it expects a sale of two Russian production facilities within the current third quarter of 2012. At a joint meeting of the Executive Board and Supervisory Board today, both boards agreed to such a sale.
This decision is based on a contract that is largely ready to be inked, under which all assets of both Russian production facilities would be transferred through a sale of STADA's indirectly wholly owned units OOO Makiz Pharma, Moscow, and OOO Skopin Pharmaceutical Plant, Ryazanskaya obl., to LLC DMN Invest, Moscow, in the context of a partial management buyout.
Follwing this decision by the STADA boards, this contract and associated temporary service deals are expected to be signed promptly in the current third quarter of 2012.
With regard to this disposal, representing another significant step in the production restructuring in the context of the Group-wide cost efficiency program 'STADA - build the future' launched in 2010, STADA incurs a one-time burden on earnings of about 9.0 million euros before taxes or some 7.2 million euros after taxes, which STADA would report as a one-time special effect in the third quarter of 2012.
Owing to the sale of the Russian plants, STADA would reach a significant restructuring goal of the 'STADA - build the future' program earlier than planned, presumably within the current fiscal 2012, namely the reduction of the number of personnel of 2010 by some 10% or around 800 full time positions throughout the Group by the end of 2013.
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by RTT Staff Writer
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