Pharma major Cipla on Wednesday said its arm Cipla (EU) Ltd has signed an agreement with CitiHealth Imports to acquire remaining 40 per cent stake in Cipla Pharma Lanka.
Cipla (EU) Ltd already has a 60 per cent stake in Cipla Pharma Lanka Pvt Ltd. Post-acquisition, Cipla Pharma Lanka will become a wholly-owned subsidiary, Cipla said in a filing to the BSE.
The acquisition of 40 per cent stake is for a cash consideration of LKR 400,000 (over Rs 1.5 lakh) to be paid on closing of transaction, it added.
"The transaction is expected to be completed before December 10, 2019," the filing said.
Cipla Pharma Lanka is a private limited liability company incorporated in Sri Lanka on August 8, 2014 having a market share of 6.5 per cent in Sri Lankan market, it added.
The company was formed as a joint venture between Cipla (EU) and CitiHealth Imports Pvt Ltd to conduct marketing and distribution of pharmaceutical products, Cipla said.
Shares of Cipla Ltd on Wednesday closed 2.21 per cent lower at Rs 467.75 per scrip on the BSE.
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