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Tuesday, January 11, 2005

NewPharm to invest EUR4m in Romania pharmacy chain

Elran Holdings controlling shareholders, the Dankner family, and NewPharm controlling shareholders, the Borovich family, are collaborating again. Elran and NewPharm have signed an agreement to set up and operate a chain of pharmacies in Romania, through a joint venture owned in equal shares by the two companies.

Elran and NewPharm will provide EUR4 million in financing to set up and operate the venture, in accordance with a ready business plan. Later, depending on the venture's progress, Elran and NewPharm will provide addition financing, unless one of the companies decides to suspend financing. If that happens, that partner's stake in the venture will be diluted. Under the pending agreement, NewPharm will provide the venture with management and consulting services, in exchange for a monthly management fee.

Posted by Mihai : 1/11/2005 03:09:00 pm