Drug maker Wockhardt today said its board had approved a plan to merge the nutrition business of Vinton Healthcare, its wholly-owned subsidiary, with itself.
“As Vinton Healthcare Ltd is a wholly-owned subsidiary of the company, no shares would be issued by the company pursuant to the aforesaid scheme of demerger,” the company said in a filing to the stock exchanges.
Sources said Vinton Healthcare owned a manufacturing unit and also partly owned Wockhardt’s nutrition business along with two other subsidiaries — Wockhardt EU Operations (Swiss) AG and Carol Info Service Ltd, promoted by Chairman Habil Khorakiwala.
Earlier, Wockhardt had decided to sell its nutrition business to Abbott for Rs630 crore, but the deal was jointly aborted. “The demerger is part of simplifying and streamlining the processes and assets and to make Wockhardt more profitable in future,” said a company spokesperson.
According to the company’s 2009-10 annual report, Vinton Healthcare had Rs184.3 crore worth assets and liabilities worth Rs109 crore. The unit also made a loss of Rs5.4 crore during 2009-10. The debt-ridden company’s lenders had allowed a debt restructuring scheme in 2009.
