Along with its existing partner, Biopharm SPA
Cipla announced that a binding term sheet has been entered into with the Company's existing partner, Biopharm SPA, for establishing a joint venture ("JV") company in Algeria.The JV company will manufacture and market respiratory products facilitating Cipla's front-end presence in Algeria. As per the term sheet, the Company's wholly owned subsidiary, Cipla (EU), will hold a 40% stake in the JV company while the remainder will be held by a Biopharm-led Algerian consortium. The JV company is expected to make an investment of up to USD 15 million in the construction of a manufacturing facility.
Cipla (EU)'s initial investment in cash in the JV company is expected to be USD 6 million.
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.
The transaction is subject to execution of definitive agreement and applicable approvals.
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