AGP Ltd didn’t confirm or deny regarding its merger with Novartis

KARACHI: AGP Limited (a listed Pharma company), in its reply to Pakistan Stock Exchange (PSX) on Thursday, did not confirm or deny anything regarding the rumours of its acquisition/merger with Novartis, but said it believe that current movement in share price is in line with the general movement seen in stock market as well as in other credible pharmaceutical companies in Pakistan.

In a letter to PSX Manager, it said, “furthermore, in the current environment due to Covid-19 and otherwise, companies particularly from essential sectors (including AGP Limited) are already exploring viable opportunities that may be available and to this end. AGP Limited has already made an announcement on June 22, 2020 of its intention to look for certain opportunities as well and if and when such opportunity is evaluated, considered and approved by the Board of Directors, appropriate disclosures will be made by AGP Limited in accordance with applicable laws.”

“Needless to say, if any report or information is issued by a credible print or electronic media institution, which could be reasonable be expected to contain price sensitive information, the company would always ensure appropriate disclosures in accordance with the laws,” it added.

“As such, while we believe that the current movement in the share price is in line with the general movement seen in the stock market as well as in other credible pharmaceutical companies in Pakistan. As and when any formal decision is taken by the Board of Directors in respect of any price sensitive information, the company will make appropriate disclosure as per applicable laws.

The Treasure Magazine has written a news in which M/s AGP Limited had acquired a division of Novartis which specializes to prepare some medicines or vaccines for revitalizations human body (specific Organs) damaged due to Coronavirus.

Before this news, the stock of AGP Ltd has sky-rocketed from Rs 90 to Rs 119 while the brokers were predicting that it could cross Rs 150 soon because of this rumour.

However, the company did not reveal in its letter regarding the rumours. These rumours are true or misleading and what is there current status.

Another question is that if the company couldn’t finalize its deal so why its Board of Directors issued notice on PSX Website before this deal in which its board of directors has authorized its management to enter into non-binding discussions, negotiations and arrangements and present the same to the board for their final consideration. The AGP’s management has further informed investors that its Board has authorized them to take decision related to business as a cornerstone to inorganic growth.

The share price of M/s AGP Ltd started moving up before the notice issued on June 22 and the investors are still looking towards the company regarding the truth of these rumours.