Weifa Proposes Separation of Consumer Health and B2B

Weifa has announcedy that the Board of Directors will propose to separate the company’s consumer health and business-to-business ("B2B") operations through a sale of its B2B business and tablet production to Vistin Pharma, a newly established subsidiary of Weifa, which will seek listing on Oslo Axess. 

A separation will allow the two companies to pursue their own strategic agenda, and represents a logical step in creating two companies with clear investment stories:

• Consumer Health — a pure consumer brand player with leading category positions
• Vistin Pharma — a strong pharmaceutical investment case with key positions and growth potential in the international metformin and opioids market, and a strong fundament to create a highly efficient Contract Management Organisation (CMO).

Highlights:

•      Weifa is contemplating a sale of its B2B and tablet production (CMO) operations to the newly established company, Vistin Pharma
•      Vistin Pharma will conduct an equity issue of approx. NOK 170 million to finance the B2B acquisition and secure working capital and funds for growth
•       The equity issue is fully guaranteed by primarily large existing shareholders of Weifa
•       All Weifa shareholders will receive tradable subscription rights in Vistin Pharma.

The board of Weifa considers that the proposed separation is in the best interests of both Weifa and Vistin Pharma, and will result in a stronger future for both the current consumer health and API activities of the Company. In particular, the board of Weifa considers that the profile and potential risks and rewards of Vistin Pharma, as an API company, will be better understood as a standalone listed business. Weifa will continue its focus as a consumer health company.

The current CEO of Weifa, Kjell-Erik Nordby, will be appointed CEO of Vistin Pharma. The board of Weifa considers that the separation is in the best interests of Weifa shareholders, and the board unanimously recommends shareholders to vote in favour of the separation at the general meeting to be held in mid-April, comments chairman Glen Ole Rødland of Weifa. "I look forward to collaborating with the board to further build upon the strong foundation set by Weifa. I am energized by the opportunity to continue leveraging the unique API facilities in Kragerø to expand the metformin, the opoids and the CMO businesses," comments CEO Kjell-Erik Nordby of Weifa.