Veselin Mareshki, leader of the Bulgarian nationalists’ party, lists Pharmhold (2PH BU), according to a notice by the Bulgarian Stock Exchange.
Mareshki road to listing
The Company has been aiming to list since 2015. Finally it received the right to apply for listing after battling the regulator’s denial to approve it as a public company in the local courts. Accordingly, Pharmhold has applied for registering with stock exchange on March 27th, 2017.
Shell company with ambitions for acquisitions
Currently, Pharmhold is a shell company with no actual operations. However, it plans to acquire a small generic pharmaceutical company with sales of BGN 10m+. The Company is yet to select potential targets and raise the funds for an acquisition. Its current listing is simply technical with a registered capital of BGN 1.99m. It earns interest on the funds, which it has loaned to pharmacies with the Mareshki brand.
Mareshki himself owns 10% of the Company, the other 90% are held by his immediate family – mother, wife and daughter.
Feasibility of deals questionable
Pharmhold will analyse 51 registered pharma producers in Bulgaria – this is what the company prospectus says according to Capital Daily publication. The media comments that the problem with potential deals is the target group of small producers that are owned by people who have been developing them from scratch so it is not very feasible that they will put those for sale. The prospectus notes that analysis could conclude that none would be available for acquisition.
However, the Company is eager to use the stock exchange listing for spreading awareness about its business and attracting capital from a wider range of investors, the prospectus notes.
Pharmhold has provided loans to 12 related companies managing pharmacies, writes Capital Daily. The loans amount at BGN 2,1m as of 20 January 2017 with fixed interest rates of 7%. According to a report as of November 2016, the Company will distribute BGN 90 000 as dividend based on net income of BGN 115 000 coming from interests.