The move comes even as the closing of the business transaction, announced in August 2012, has been pending following financial issues in Orchid. Hospira is expecting the deal, at a revised purchase price of $218 million, would be completed in the first half of 2014, said the company’s annual report.
A spokesman said, “We do not provide financial details beyond what is provided in the 10K annual report.”
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The company has entered into foreign exchange option contracts with an aggregate notional value of Rs 750 crore, at a net premium of $1.6 million, payable at inception. In January, it entered into another foreign currency exchange option contract to hedge the pending Orchid acquisition, with an aggregate notional value of Rs 250 crore and a net premium of $300,000, payable at inception.
“These transactions have been entered into to mitigate a portion of the exposure resulting from movements of the dollar against the rupee in connection with the future anticipated purchase price,” said the annual report.