VEM Asks for Staple Financing to Help Spur Ratiopharm Bids

VEM, the parent company of Ratiopharm, has directed Commerzbank and BNP Paribas to put together staple financing in support of potential Ratiopharm bidders. VEM put the German pharmaceutical producer on the auction block earlier this year in an attempt to raise capital to pay down debts.

Ludwig Merckle would like to see Ratiopharm sold as a single unit, though he hasn't ruled out the possibility of dividing the company if need be. Potential buyers were given a Dec. 3 deadline to submit non-binding, first-round bids, most of which came in between €2 billion and €2.5 billion.

Among the list of those interested in Ratiopharm are health care industry players Actavis, Mylan, Sanofi-Aventis, Sinopharm, and Teva. Several buyout firms also made offers including EQT, KKR, Permira, and a partnership of Advent and Goldman Sachs. VEM officials expressed pleasant surprise at the number and size of the bids received, encouraged that the high-priority divestiture can be completed to everyone's satisfaction.