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Strides Shasun to divest API arm to Solara for Rs 131 cr

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Press Trust of India New Delhi
Last Updated : Apr 24 2018 | 4:20 PM IST

Drug firm Strides Shasun today said its board has approved a proposal to divest its entire shareholding in Strides Chemicals to Mumbai-based Solara Active Pharma Sciences for Rs 131 crore.

Strides Chemicals, a subsidiary of Strides Shasun, is into developing and manufacturing of active pharmaceutical ingredients (APls).

The company's board today approved divestment of its 100 per cent shareholding in Strides Chemicals to Solara, Strides Shasun said in a regulatory filing.

The divestment will help Strides become leaner, while retaining supply chain security for the formulations portfolio, Strides Shasun said in a regulatory filing.

"Under the proposed terms of the agreement Strides will divest 100 per cent of the issued capital in Strides Chemicals to Solara for a cash consideration of Rs 1,310 million, as determined by independent valuers," it said.

The transaction is subject to customary closing conditions including approval by the shareholders of both the companies, it added.

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As per the deal, Strides through its long term development and manufacturing agreement with Solara will get a 'most favoured customer' status for all the drug master files (DMFs) required for the integrated formulations portfolio.

Shares of the Strides Shasun today ended 0.18 per cent down at Rs 645.75 on BSE.

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First Published: Apr 24 2018 | 4:20 PM IST

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