Pharma firm Wockhardt will be selling its animal health division to France-based Vetoquinol for an estimated Rs 170-180 crore.
Wockhardt has entered into an agreement with Vetoquinol, a veterinary pharma laboratory, to divest the animal health division and the deal is expected to close in the second half of 2009, it said in a statement today.
According to banking sources with the knowledge of the deal, the value of the transaction is estimated to be Rs 170-180 crore.
When contacted, a Wockhardt spokesperson declined to comment on the deal value.
"The transaction is subject to the receipt of the necessary administration approvals and should take effect in the second half of 2009," Wockhardt said in the statement.
Shareholders of the company approved the divestment of the animal health division through a postal ballot on June 1.
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Wockhardt said the move to divest its non-core business is a step towards its continued growth plan and a firm focus on its core human pharmaceutical business.
"Wockhardt is re-inventing itself by taking fundamentally strong and positive steps by restructuring and rationalising its business to raise fresh capital and gain investor confidence," the statement added.
The animal health division had net sales of Rs 77 crore for the year ended December 31, 2008.