Cadila Healthcare rose 2.60% to Rs 646.10 after the company's subsidiary announced plans to sell its India focused animal health business to Multiples Alternate Asset Management led consortium.
Zydus Animal Health and Investments (ZAHL), a wholly owned material subsidiary of Cadila Healthcare, has entered into a business transfer agreement (BTA) and other ancillary agreements to sell and transfer its Animal Healthcare Established Markets Undertaking (Zydus AH) to Multiples Alternate Asset Management led consortium.
The deal is to sell one of the two business undertakings of ZAHL, called Animal Healthcare Established Markets Undertaking on a slump sale basis as a going concern, for a lump sum consideration of Rs 2,921 crore on a cash free and debt free basis, subject to certain closing date adjustments and other conditions.
The consortium, including Canada Pension Plan Investment Board (CPP Investments) and RARE Enterprises (RARE), has agreed to purchase the Undertaking through an SPV controlled by them, in the name of Zenex Animal Health India.
The transaction involves transfer of immovable assets, movable assets, inventory, brands and intangible assets, contracts, licenses and permissions, business records, employees along with employee benefit funds, insurance policies, other assets and assumed liabilities.
ZAHL has another animal healthcare business undertaking which is expected to commence animal health business in the US and certain European countries and this business undertaking is not part of the transaction. Zydus continues to develop the animal health business products for those markets and at present, this business is in the development and investment phase.
Pankaj Patel, chairman, Cadila Healthcare, said, "Over the last 3 decades Zydus AH has grown to become a pioneer and market leader in the Indian animal health industry. With Multiples and its consortium partners committed to growing the business, we are sure that Zydus AH will continue to grow and strengthen its position in the industry."
More From This Section
Dr. Arun Atrey, managing director, ZAHL said, "The Zydus AH business has a very strong franchise in the market and is extremely well positioned to take advantage of the continued industry growth in India and select exports markets. We expect this process to be seamless for our customers, suppliers and other stakeholders, with no disruption to our operations."
Cadila Healthcare is a global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies.
The company reported 40.6% rise in consolidated net profit to Rs 512.50 crore on a 6.2% rise in net sales to Rs 3,753.70 crore in Q3 FY21 over Q3 FY20.
Powered by Capital Market - Live News