Investment firm Zrosk buys 10% stake in Lagos-based drugmaker MeCure

Zrosk Investment Management Limited, a firm of investment managers focusing on Africa, has taken a 10 per cent ownership in pharmaceutical company MeCure Industries Limited, according to a regulatory filing published on Friday.

Zrosk targets small and middle market businesses in the real sector with high growth potential.

MeCure, which was admitted by the Nigerian Exchange (NGX) last November into its Growth Board, said the off-market deal was finalised, following clearance from the exchange.

The NGX Growth Board, the listing segment for growth-oriented companies with relatively small market value, allows firms with a market capitalisation of at least N500 million to join its ranks.

Based in Lagos, MeCure manufactures and distributes over-the-counter medicines, branded generics and dietary supplements.

Balance sheet size as of June was N52.9 billion, while market value at the start of trade on Friday stood at N33.6 billion.

“This investment reflects the confidence in our long-term growth strategy and our commitment to delivering quality healthcare solutions to millions of Nigerians,” said Arjun Udani, co-CEO of MeCure.

“With Zrosk’s support, we are well-positioned to execute our ambitious expansion and continue making a positive impact on the healthcare sector in Nigeria and beyond.

The share purchase makes Zrosk the first institutional investor to take a significant stake in MeCure, where Mr Udani held a 31.8 per cent interest and two other Indians – Samir Udani and Avni Udani – each held a 32.3 per cent stake before the transaction.

It is also a plus for the medicine manufacturer in meeting the regulation requiring not less than 10 per cent of the issued shares of companies like MeCure to be owned by people other than directors and insiders.

“One of our core convictions at Zrosk IM is that ownership on the African continent is shifting towards indigenous hands. We view the stock market as a theatre of such transition, and we see MeCure Industries as a potential dominant player in the pharmaceutical value chain on the continent,” Samson Esemuede, Zrosk’s managing director, said.

The equity participation marks a major shift in the business model of Zrosk, which for long has invested solely in alternative assets – a type of investment that does not include conventional assets like stocks and bonds.

The company’s investment interests include sectors like renewable, manufacturing, agriculture, fitness and mining among others, according to the company’s website.

Its portfolio comprises Max.ng, Ditto Africa, Union54, ZirooPay, Nord and Gartner Callaway.