Ghana: 3 Merged Pharmaceutical Companies List On Accra Bourse

16 January 2020

Dannex Ayrton Starwin (DAS) Plc has been listed on the Ghana Stock Exchange (GSE) to give opportunity to both local and foreign investors to invest in the company.

This comes on the heels of the successful merger of the three local pharmaceutical companies, namely Ayrton Drug Manufacturing Limited, Starwin Products Limited and Dannex Limited into one entity.

The merged entity is trading on the Accra bourse under the name DAS Pharma.

Speaking at the launch and listing of DAS Plc in Accra yesterday at the trading floor of the GSE, the Managing Director of the GSE, Ekow Afedzie said the listing of DAS Plc was historic and significant in the annals of the GSE.

He explained that it was the first time that two listed local companies had merged with a non listed local company to list on the GSE, adding that the DAS Plc merger was the sixth on the Accra bourse.

Ayrton Drugs Manufacturing Limited was listed on the GSE in August 2009 and Starwin Products Limited was listed on the Accra bourse in December 2004.

Mr Afedzie stated that the market capitalisation of DAS Plc stands at GH₵33 million.

He commended the management of the DAS Plc for the decision to list on the GSE, saying it would help the company to raise more capital through bonds and right issue to finance and expand the operations of the company.

Mr Afedzie entreated local companies to use the GSE to raise capital to finance their business operations.

The Chief Executive Officer (CEO) of DAS Plc Daniel Appeagyei Kissi in his address said the three indigenous pharmaceutical companies have been operating in Ghana since the 1960s, signifying their resilience and importance to the Ghanaian economy in general and pharmaceutical industry in particular.

"Dannex Aryton Starwin Plc, trading as DAS Pharma will combine the individual capabilities of the three legacy companies to create a strong company with a strong distribution network, strong product portfolio, economies of scale, strong human resource base and a significant player in the pharmaceutical industry," he said.

He said the merged entity would become the largest local pharmaceutical manufacturing company in Ghana with a portfolio of 80 products, stressing the synergies derived from the merger would enable DAS Plc to improve operating efficiency, optimise cost, grow volumes and profitability and thus achieve the company's growth ambition and maximise shareholder value.

"We will invest in the business to strengthen our footing in Ghana and expand into the rest of Africa and beyond," Mr Kissi added.

The Chairman of DAS Plc, Nik Amarteifio speaking on the merger and prospects of DAS Plc said the processes for the merger of the three entities started in 2014 when Dannex, a wholly owned Ghanaian limited liability company, set in 1964, acquired majority shares of 71.33 per cent in Starwin Products Limited, through Starwin's renounceable right issue.

He said in 2016, Dannex acquired 53.47 per cent out of the 78.57 shares held by Adcock Ingram of South Africa in Ayrton Drug Manufacturing Limited, thereby, making Dannex the majority shareholder in Ayrton as well.

The DAS Plc began trading after listing and the company's shares were traded at 0.40 per share.

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