Hikma Pharmaceuticals PLC, a British multinational pharmaceutical company, is looking to acquire a majority stake in GlaxoSmithKline (GSK) Egypt.

In a statement to the Egyptian Exchange, GSK Egypt announced that its majority stakeholder, Glaxo Group Limited, has signed a non-binding term sheet with Hikma for a potential acquisition of 91.2 percent of the company by submitting a compulsory purchase offer for 100% of the company's entire shares.

The potential acquisition is subject to several conditions that must be met in advance, which are the completion of a satisfactory due diligence examination, the conclusion of final and binding contracts, in addition to obtaining the approval of the regulatory authorities, according to the statement.

The memorandum of the non-binding basic conditions indicated that the acquisition project includes the possible acquisition of other investments related to consumer health and the pharmaceutical trade in Egypt, in addition to the pharmaceutical companies in Tunisia affiliated with the GlaxoSmithKline Group.

GSK Egypt has recently reported a strong growth and profit during 2020. In November 2020, the company reported a 51.2 percent year-on-year (YoY) growth in its consolidated net profits, logging EGP 101.41 million in the first nine months of 2020. During the first half (H1) of 2020, GSK Egypt recorded net profits of EGP 115.96 million, up from EGP 28.847 million in H1-19.

According to the statement, the letter of the main shareholder included a request to enable the company wishing to acquire the ability to carry out due diligence checks on GSK.