Chinese firm Livzon spends over $219 mln to acquire 64.8% stake in Vietnam's Imexpharm

A major acquisition of shares in Vietnamese pharma firm Imexpharm is expected to strengthen Livzon Pharmaceutical Group’s international expansion strategy and support its entry into foreign markets.

Chinese firm Livzon Pharmaceutical Group Inc. recently announced the acquisition of a 64.81% stake in Vietnam’s Imexpharm Pharmaceutical JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as IMP.

The shares were acquired through a transfer from SK Investment (a subsidiary of South Korea’s SK Group), Binh Minh Kim Investment JSC, and KBA Investment JSC.

According to the announcement, a subsidiary of Livzon Pharmaceutical Group and the sellers signed an agreement for the transfer of approximately 99.8 million IMP shares, representing 64.81% of the company’s total shares.

The breakdown of the share transfer is: SK Investment with 73.4 million shares, Binh Minh Kim with 15 million shares, and KBA Investment with 11.3 million shares

The total value of the transaction is estimated at nearly VND5,731 billion (over $219 million). Of that, Livzon paid over VND4,216 billion to SK Investment, nearly VND863 billion to Binh Minh Kim, and approximately VND652 billion to KBA Investment

Following the transaction, Livzon Pharmaceutical Group becomes the largest shareholder of Imexpharm.

The acquisition is reportedly part of Livzon’s strategic efforts to build a strong foundation for global market expansion and to promote its internationalization and sustainable growth in the pharmaceutical sector.

Imexpharm submitted official documentation to the State Securities Commission of Vietnam and the Ho Chi Minh City Stock Exchange (HoSE) to confirm the transaction last Friday.

Founded in 1985 in China, Livzon Pharmaceutical Group specializes inresearch, development, production, and distribution of pharmaceutical products.

Imexpharm, originally established in 1977 in the southern province of Dong Thap, is now one of Vietnam’s leading pharmaceutical manufacturers.

The company operates four production facilities located in Dong Thap, Ho Chi Minh City, and the southern province of Binh Duong. Three of these facilities meet EU-GMP standards, comprising a total of 11 production lines.

In 2024, Imexpharm reported revenue of VND2,205 billion ($85.06 million), an 11% increase over the previous year. After expenses, the company posted a net profit of VND320 billion ($12.34 million), up 7% from 2023.