Sanofi announced that it will spin off its API (active pharmaceutical ingredients) business with the name EUROAPI.
EUROAPI will be valued at EUR 1-1.5b which is only 1% of Sanofi’s market capitalization. Therefore EUROAPI could be a prime candidate for strong selling pressure right after the listing. L’Oreal as the largest shareholder of Sanofi (9%) however has committed to a lock-up period of 1 year.
About 58% of the share capital of EUROAPI will be distributed to Sanofi shareholders while Sanofi intends to keep a 30% in the newly listed company. 12% will be acquired by the French state.
EUROAPI 2022E guidance of EUR 1b, EBITDA target margin of 14% (2021: 12%)
CEO: Karl Rotthier
The CEO will buy shares to the value of EUR 360k from Sanofi set at the average price of the first 20 trading days.
Distribution ratio of 23 to 1.
70% of Capex is maintenance.