Far-Ben of Mexico Completes Capitalization

Far-Ben S.A. De C.V., Mexico’s largest pharmaceutical chain, completed its US$51.2 million capitalization, on December 23, 2002. Far-Ben operates 662 stores, and has annual sales of approximately US$500 million. The majority investor, Chilean pharmaceutical chain Farmacias Ahumada S.A., contributed US$45 million in the deal and now controls Far-Ben. Other investors include the Benavides family, US$6 million and public investors, US$0.2 million.

The deal commenced October 21, 2002, with the parties’ execution of a subscription agreement subject to various governmental authorizations. A shareholders’ meeting of Far-Ben followed on November 11 to approve a capital stock increase. Farmacias Ahumada recently carried out a public offering to buy Far-Ben shares.

Creel, García-Cuéllar y Müggenburg, S.C., advised Farmacias Ahumada with a team led by Jean Michel Enriquez and including Francisco Montalvo in Monterrey, and José Ruiz, Augusto Alvarez, Dina Morelo and Carlos Zamarron in Mexico City; along with Vial y Palma in Chile with a team led by Manuel José Vial and Nicolas Tagle.

Far-Ben was represented by Baker & McKenzie, with a team led by Andrés Ochoa-Bünsow and José Guzman Quiroga, and supported by Miguel Ferriz-Martinez, Adrian Flores-Villarreal, Bertha García-Hernandez and Valeria Chapa-Garza in Monterrey.