RAK Ceramics Bangladesh has announced that it is selling RAK Pharma, its pharmaceutical interest. The world’s largest ceramics manufacturer is offloading the asset in line with its pre-announced strategy to focus more on its core business of ceramics production.
RAK Ceramics Bangladesh currently has a 55 per cent stake in RAK Pharma. The board of RAK Ceramics Bangladesh has approved the offer of to acquire 77.5 per cent of the shares of RAK Pharma for $9.5m. The company is selling its entire stock of RAK Pharma shares, with the other shares being sold by minority shareholders.
“The decision to sell RAK Pharma was taken for two reasons. Firstly, our strategy is to focus on our core activities; tiles, sanitaryware, taps and faucets and tableware. In addition, RAK Pharma is currently a loss-making division so it makes good business sense to sell it at this time. The RAK Ceramics Bangladesh board had previously approved the increase in capacity of tiles and sanitaryware production in Bangladesh and this expansion is already underway and will be completed in 2015. Again this is in line with the corporate strategy to focus on core activities,” said Abdallah Massaad, CEO, RAK Ceramics.
RAK Ceramics will be following up their announcement of their sale of RAK Pharma with a net financial impact report following consolidation status and after receiving the necessary financial and regulatory approvals.
Source : WAM News Agency for United Arab Emirates
