The German company Stada purchased 97.9 percent of our company shares within the determined deadline and, thus, it officially became the majority owner of Hemofarm a.d. on August 09th 2006. Stada offered EUR 485 million for the purchase of 100 percent of Hemofarm shares, which is the most valuable purchase in the history of this 111-year old German company.

The share purchase began officially on July 20th 2006, with the announcement at the press conference held in the Villa Breg Hotel in Vršac. The bid lasted for three weeks and it ended with the successful acquisition in which Stada paid EUR 480.4 million for 97.9 percent of Hemofarm shares. The share price was EUR 146.97 or CSD 12,345. This price was offered in the case of 67 percent of shares, which was the minimum condition for the merger of these two companies. The ultimate goal of Stada is the purchase of all 3,300,000 shares, which will be pursuant to the Law on Business Enterprises, stipulating that if a company purchases minimum 95 percent of a company, the owners of the remaining shares are obliged to sell them to a new owner.

Hemofarm entered the process of searching for a strategic partner some two years ago. Substantial help was offered by the famous world bank ABN AMRO, as a consultant. Mr. Miodrag Babić, the President of the company, represented the interests of 65 percent of shareholders in this business. The management of our company recognized its future partner, competent in the field, precisely in the negotiations with the German pharmaceutical company Stada.

Stada, which has been experiencing its expansion in the last fifteen years, nowadays occupies the eighth position among the largest world manufacturers of generics. Taking Hemofarm over, Stada, according to the expectation, has reached the seventh position in the list of generic manufacturers.

By our company takeover, The German pharmaceutical company Stada intends to intensify its presence in the world market and, thus, it experiences even larger development expansion.

Since Hemofarm has been having good experience in the cooperation with the German pharmaceutical industry so far, the management of our company is confident that this experience, as well as the compatibility in advantages and potentials will lead to the desired synergy and large positive effect.

The contract between Stada and Hemofarm protects in full the vital interests of Hemofarm – the brand and seat of the company remain unchanged, the previous corporate, social responsibility and position of Hemofarm Foundation is retained.