Sri Lanka’s Sunshine and CIC in talks to merge healthcare business
ECONOMYNEXT – Sri Lanka’s Sunshine Holdings Plc and agrochemical group CIC Holdings Plc said they are in talks to merge healthcare operations.
A joint statement from the firms said that Sunshine would hold 60 percent of the shares in the merged business, while CIC would hold 40 percent.
The terms of the merger are under negotiations and are subject to due diligence findings, the firms said.
The deal was announced after trading hours on Thursday. Sunshine’s share closed 4.80 rupees higher at 49.80 rupees while the CIC share ended 60 cents lower at 40 rupees.
Sunshine operates the Healthguard retail pharmacy chain, as well as trades in pharmaceuticals and medical equipment.
CIC Holdings too imports pharmaceuticals and medical equipment, but also produces healthcare and personal care products locally, including the herbal remedy ‘Samahan’.
For the nine months ended December 2018, Sunshine’s healthcare segment posted 6.8 billion rupees in revenue, up from 6 billion rupees a year earlier and 331.3 million rupees in operating profits, up from 323.9 million rupees.
CIC’s healthcare business made 6.1 billion rupees in revenue, up from 5.9 billion rupees a year earlier and 475.8 million rupees in operating profits, growing from 423.7 million rupees.
Sri Lanka’s pharmaceuticals are subject to price controls, which hit firms unexpectedly with sudden revisions amid a depreciating currency. (Colombo/Mar15/2019-SB)