OREANDA-NEWS. January 20, 2011. OJSC Pharmstandard-Leksredstva (the “Company”) announced an offer to purchase up to 1,850,000 shares of OJSC Pharmstandard (“Pharmstandard”), representing about 4.9% of Pharmstandard’s share capital. 

The offer is conducted in accordance with the decision of the Company’s sole shareholder dated 18 January, 2011. OJSC Pharmstandard-Leksredstva is a wholly-owned subsidiary of OJSC Pharmstandard.

Under the terms of the offer, shareholders are invited to sell part or all of their holdings in Pharmstandard at a price of 3000 Russian Rubles per ordinary share. The offer will commence at 16:00, Moscow Time, on January 18, 2011 and expire at 18:30, Moscow time, on February 18, 2011, unless extended by the Company. On February 18, 2011, based on the review of the submitted applications to sell shares (“ofertas”), OJSC Pharmstandard-Leksredstva will indicate to the shareholders, which submitted ofertas, the number of shares allocated to them by the Company.

In line with its strategy Pharmstandard continues to look for opportunities to increase its market capitalisation through acquisitions and organic growth. The decision to return cash to shareholders through buy back of Pharmstandard shares by the Company is consistent with Pharmstandard’s commitment to maintain an appropriate capital structure and a disciplined approach to returning excess capital to shareholders.

With overall low leverage (total outstanding credit debt of USD 12,9 million at December 31, 2010) and effective cash flow management Pharmstandard remains well positioned to fund its growth strategy.

All relevant documents relating to the offer, including the Offer Memorandum, are available at http://www.e-disclosure.ru/and http://www.pharmstd.ru/investors_en/investor/offer_memorandum/

Pharmstandard management is pleased to invite investors and media to participate in a conference call to discuss the offer, which will include a Q&A session.