Aurobindo Pharma is trading higher by 4% at Rs 397 after the company announced the signing of a binding offer to acquire commercial operations in seven Western European countries from Actavis.
Aurobindo expects to acquire personnel, commercial infrastructure, products, marketing authorizations and dossier license rights in seven European countries- notable being France, Italy, Spain, Portugal,Germany, Netherlands and Belgium, the company said in a statement.
In terms, of value of the transaction, the company is likely to pay around 30mn euros and will depend upon the cash and net working capital position at closing. The company plans to fund the said acquisition through internal accruals, thus is unlikely to strain the balance-sheet.
Management estimates the net sales for the acquired businesses would be around 320mn euros in 2013 with a growth rate of over 10% year-on-year.
The company said, although these businesses are currently loss-making (not quantified by the company); Aurobindo expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure.
The stock opened at Rs 382 and touched a high of Rs 402 on the BSE. A combined over 2 million shares changed hands on the counter till 0945 hours on the BSE and NSE.
Aurobindo expects to acquire personnel, commercial infrastructure, products, marketing authorizations and dossier license rights in seven European countries- notable being France, Italy, Spain, Portugal,Germany, Netherlands and Belgium, the company said in a statement.
In terms, of value of the transaction, the company is likely to pay around 30mn euros and will depend upon the cash and net working capital position at closing. The company plans to fund the said acquisition through internal accruals, thus is unlikely to strain the balance-sheet.
Management estimates the net sales for the acquired businesses would be around 320mn euros in 2013 with a growth rate of over 10% year-on-year.
The company said, although these businesses are currently loss-making (not quantified by the company); Aurobindo expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure.
The stock opened at Rs 382 and touched a high of Rs 402 on the BSE. A combined over 2 million shares changed hands on the counter till 0945 hours on the BSE and NSE.
