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Cipla may gain as Cipla (EU), UK acquires a 51% stake in Quality Chemicals

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Last Updated : May 22 2015 | 12:14 PM IST

Cipla said that Cipla (EU), U.K., the wholly owned subsidiary of the company, has entered into a definitive agreement to acquire a 51% stake in Quality Chemicals, Uganda (QCL) from the existing shareholders of QCL. As per the agreement, the cash consideration for 51% stake is payable in tranches with approx. $8 million payable upfront on completion and 5 equal installments of $4.41 million payable at annual intervals thereafter. The transaction is expected to be completed by end of July 2015, subject to completion of certain conditions precedent. The announcement was made after market hours yesterday, 21 May 2015.

QCL was incorporated in the year 1997 and is engaged in the business of import and distribution of pharmaceutical and consumer products. QCL also holds a 22.05% stake in Cipla's subsidiary in Uganda, Cipla Quality Chemical Industries (CQCIL). Consequent to this acquisition, Cipla's effective stake (held through its subsidiaries) in CQCIL will increase from the existing 51.05% to 62.30%. This acquisition will further strengthen the company's overall presence in the African market, Cipla said.

The turnover of QCL for the financial year ending Dec 2012, Dec 2013 and Dec 2014 was Ugandan Shilling 15.76 billion, Ugandan Shilling 17.02 billion and Ugandan Shilling 14.85 billion respectively.

None of the persons belonging to Promoter / Promoter Group(s) of the company has any interest in the transaction and it is not a related party transaction for the company, Cipla said.

Coal India, ITC and State Bank of India (SBI) announce Q4 results today, 22 May 2015.

Dabur India after market hours yesterday, 21 May 2015, said that CRISIL has reaffirmed its rating on the company's long term bank facilities of Rs 125 crore at CRISIL AAA/Stable. CRISIL also reaffirmed the rating on the company's short term bank facilities (bank guarantees) of Rs 32.50 crore at CRISIL A1+. CRISIL reaffirmed the rating on the company's non convertible debenture programme of Rs 20 crore at CRISIL AAA/Stable and commercial paper programme of Rs 200 crore at CRISIL A1+.

MMTC's net profit rose 16.04% to Rs 37.98 crore on 18.23% rise in total income to Rs 5070.48 crore in Q4 March 2015 over Q4 March 2014. The company announced results after market hours yesterday, 21 May 2015.

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Britannia Industries' consolidated net profit rose 55.35% to Rs 167.25 crore on 14.72% rise in total income to Rs 2091.94 crore in Q4 March 2015 over Q4 March 2014. The company announced results after market hours yesterday, 21 May 2015.

Nestle India after market hours yesterday, 21 May 2015 said that on 30 April 2015 the local authorities in Lucknow asked the company to recall one batch of MAGGI Noodles (around 200,000 packs) which were manufactured in February 2014 and had already reached the 'Best Before date' in November 2014. The company's current practice is to collect stock that is near 'Best Before date' from distributors/retailers so company is confident that these packs are no longer in the market, Nestle India said. The company does not agree with the order and is filing the requisite representations with the authorities. In the meantime it is important to note that there are no other orders to recall MAGGI Noodle products in the market, the company said. People can be confident that Maggi Noodle products are safe to eat, it added.

Nestle India said that the quality and safety of its products are its top priorities. The company has in place strict food safety and quality controls at MAGGI factories, including thorough quality checks at each stage of its raw material sourcing and manufacturing process. This includes comprehensive testing to ensure that MAGGI Noodles comply with all applicable food safety laws, as well as the company's own high standards of quality and safety before they reach consumers.

Nestle India said that the company is aware of reports that tests by the local authorities have detected Monosodium Glutamate (MSG) in a sample of MAGGI Noodles and that they are continuing their investigation. The company has submitted product samples to an independent accredited laboratory and will share the results with the authorities.

Nestle India said that the company does not add MSG to MAGGI Noodles sold in India and this is stated on the concerned product. However, the company uses hydolysed groundnut protein, onion powder and wheat flour to make MAGGI Noodles sold in India, which all contain glutamate. The company believes that the authorities' tests may have detected glutamate, which occurs naturally in many foods, nestle India said. The company said that it was also aware of the reports of elevated levels of lead in a pack of MAGGI Noodles analysed by the authorities.

The company regularly monitors for lead as part of its stringent quality control processes, including testing by accredited laboratories, Nestle India said. These tests have consistently shown lead levels in MAGGI Noodles to be within permissible limits. The company has submitted product samples to an independent accredited laboratory and will share the results with the authorities, Nestle India said.

On consolidated basis, Bajaj Holdings & Investment's net profit fell 11.11% to Rs 524.98 crore on 11.08% fall in total income to Rs 84.77 crore in Q4 March 2015 over Q4 March 2014. The announcement was made after market hours yesterday, 21 May 2015.

On consolidated basis, Voltas reported 17.55% rise in net profit to Rs 118.04 crore on 1.78% rise in total income to Rs 1520.26 crore in Q4 March 2015 over Q4 March 2014. Operating profit rose 30% to Rs 159 crore in Q4 March 2015 over Q4 March 2014. The announcement was made after market hours yesterday, 21 May 2015.

Wockhardt said that that US Food and Drug Administration (FDA) has yesterday, 21 May 2015 granted WCK 4873, a product from their New Drug Discovery program, Qualified Infectious Disease Product (QIDP) status. This is the third product from Wockhardt to receive this coveted status after WCK 771 and WCK 2349 last year and provides a strong boost to its drug development program. WCK 4873 is a new class of antibiotic drug which will be used for the treatment of Community Acquired Bacterial Pneumonia (CABP) which has risen by alarming proportions globally. The announcement was made at fag end of the day's trading session yesterday, 21 May 2015.

Shares of CMC turn ex-dividend today, 22 May 2015 for dividend of Rs 27.50 per share for the year ended 31 March 2015.

Indiabulls Real Estate's consolidated net profit jumped 123.48% to Rs 93.13 crore on 84.49% rise in total income to Rs 630.70 crore in Q4 March 2015 over Q4 March 2014. The company announced results after market hours yesterday, 21 May 2015.

Indian Hotels Company said that the board of directors of the company, have approved the proposal for delisting of Global Depository Receipts (GDRs) from London Stock Exchange, subject to getting requisite approval from the concerned agencies and the other Regulatory authorities and necessary filing with the relevant stock exchanges as may be necessary. The announcement was made after market hours yesterday, 21 May 2015.

20 Microns said that the board of directors of the company at its meeting held on 21 May 2015, inter alia, has approved the allotment of 10.88 lakh shares of the company at Rs 34 per share in conversion of 10.88 lakh compulsorily convertible warrants to the persons other than promoters of the company. The announcement was made after market hours yesterday, 21 May 2015.

Uttam Value Steels said that Court Convened Meeting of the Secured Creditors of the Company held on 20 May 2015, for Scheme of Arrangement (Scheme) between Uttam Value Steels (UVSL) and Lloyds Steels Industries (LSIL), has been approved by the Secured Creditors. The announcement was made after market hours yesterday, 21 May 2015.

Intellect Design Arena said that the board of directors of the company at its meeting held on 21 May 2015 have accorded their in-principle approval for merging the company's wholly owned subsidiaries viz., Indigo Tx Software and Laser Soft Infosystems with the company through a Scheme of Arrangement/Merger. The announcement was made after market hours yesterday, 21 May 2015.

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First Published: May 22 2015 | 8:34 AM IST

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