Strides : Buy-out prop

STOCK IN THE NEWS

Strides Arcolab rose 7.46 per cent to Rs 383.1 , after its European joint venture unit signed an agreement to acquire stake in Norwegian Farma Plus.

The trading volume increased from weekly aggregate of 1.35 lakh shares during the week ended January 25 to 11.91 lakh shares last week. The surge came about after Invert Farma Group announced a joint venture to develop products for Spain and Portugal.

At the current market price of Rs 385.45, Strides Arcolab trades at 37.24 times its FY-ended December 2006 EPS of Rs 10.35. Strides Arcolab said on Thursday that a unit of its European joint venture with Invent Farma signed an agreement to acquire 100% stake in Norway's Farma Plus.

"The signing of the share purchase agreement with shareholders of Farma Plus is a key strategic initiative for both partners, and will help to achieve significant critical mass in the Scandinavian market," Strides Arcolab and Invent Farma said in a joint statement.

Recently, Strides Arcolab and Invent Farma Group, which includes Laboratorios Lesvi and Inke, a leading Spanish company, will set up a JV to develop a range of specialised products.