FBK specialists stated the value of Pharmstandard stock redemption

On 5 July 2013 Pharmstandard Board of Directors approved branching out of the business to produce branding OTC drugs with the establishment of a separate legal entity. The new company equities will be distributed proportionally among the existing Pharmstandard shareholders who agreed with the project for restructuring.
Pharmstandard Board of Directors in accordance with the “About joint-stock companies” Federal law made a decision to redeem the stock from the minority shareholders abstaining from voting or voting against the restructuring.
The redemption price of one share to be determined according to the law shall not be below the value of assessment by an independent valuator.
To carry out the valuation procedure and determine the redemption fair value Pharmstandard invited the experts of FBK Valuation Department.
According to Stanislav Anikanov, Director of FBK Valuation Department, the experts carried out the valuation procedure with taking into account the market, precedents, valuation standards, and the Federal law “About Valuation”, on the basis of the client’s reporting data.
The FBK specialists determined the price for redemption within a month and estimated it as RUR 2,180.00 per one ordinary share.
The experts are at variance as to whether Pharmstandard is going to get the listing for the new company stock at the MICEX, London Stock Exchange, or the stock will not be included in the quotation list.
“In any case, that is a large-scale and precedential project not only for FBK, but for the Russian market, too”, added Stanislav Ankanov.

Pharmstandard is the leading pharmaceutical company in Russia which is engaged in the development and production of drugs.
Proceeds from the sale of drugs in I Quarter 2013 was 16.4 billion roubles, according to the company’s statements.
8 drug production plants in Russia and the Ukraine form Pharmstandard.
Since May 2007 the Pharmstandard stock and global depository receipts have been circulating at the grounds of MICEX-PTC and LSE (London Stock Exchange) respectively.