September 21, 2023
admin
Nirma buys Glenmark Life Science
Glenmark Pharma to sell 75% stake in Glenmark Life Sciences
Glenmark Pharmaceuticals (GPL) on September 21 said that it will sell 75 percent stake in Glenmark Life Sciences to Nirma for a sum of Rs 5,651 crore. The share sale has been priced at Rs 615 a piece.
GPL currently owns 82.84 percent stake in the company.
Nirma had eventually submitted its binding bid for Glenmark Pharmaceuticals’ stake in August. The Ahmedabad-headquartered group was looking at inorganic forays into the pharma sector and had acquired a 100 percent stake in Stericon Pharma Private Limited, a Bangalore-based contract development manufacturing organisation (CDMO) that makes sterile contact lens cleaning solutions and eye drops.
Glenmark Life Sciences is a research and development (R&D)-driven API manufacturer with a local presence in markets like North America, the United Kingdom and Latin America. It supplies APIs to more than 700 pharma companies in multiple countries.
The firm caters to chronic therapeutic areas such as cardiovascular disease, central nervous system disorders, pain management and diabetes, among others.
Its FY22-23 revenue and net profit stood at Rs 2,161 crore and Rs 466 crore respectively.
On buyout of Glenmark Life Sciences by a non-traditional pharma player like Nirma Group, Chairman and Managing Director Glenn Saldanha said, “This is a big play into pharma for the Nirma group, they have been super successful in multi businesses. I am pretty sure they will use this as platform to expand further.”
Buyback coming: Pursuant to the deal Nirma will take a mandatory open offer to give minority shatreholders an option to exit the firm. Upon the completion of the deal and the open offer, Nirma will become the new promoter of the company. Thereon, compliance with minimum public shareholding requirements will be the responsibility of Nirma.
GPL will retain 7.84 percent stake in Glenmark Life Sciences, however, it and the other members of the promoter group of the Company are proposed to be reclassified as public shareholders.
Prior to the closing of the transaction, the board of directors of Glenmark Lifesciences may consider, approve and declare an interim dividend of Rs 22.50 per equity share. In such event, the sale consideration will stand adjusted in the manner specified in the Share Purchase Agreement.
As part of the deal, GPL has agreed to procure active pharmaceutical ingredients (API) from Glenmark Life Sciences for a period of five financial years with effect from April 1, 2024. Moreover GPL and certain subsidiaries of GPL will provide support services for a specified period, including with respect to business development arrangements in overseas jurisdictions.
>>Go to Mainboard IPOs Section: Click
>>Get Good Staff or Job, Click: Staffavailable.com
>>Interested in Used Automobiles or vintage cars? Click: BigGaddi.com
>>Get solid Guidance on Mutual fund Investments, Click: ChanakyaMFGuidance.com
>>Study Stock Research Reports, Click: AnalysisLibrary.com
>>Interested in Crossword Puzzles? Click: Magajmari.com
