Drug firm Strides Arcolab today announced that Jordan-based investment firm GMS Holdings will pick up 25.1 per cent stake in its biotech arm Stelis Biopharma for USD 21.90 million (about Rs 135 crore).
The company has entered into an agreement with GMS Holdings whereby GMS will invest USD 21.90 million for a 25.1 per cent stake in Stelis Biopharma, the biotech arm of Strides, to fund its greenfield project, Strides Arcolab said in a statement.
The transaction is expected to close in Q4 of 2014 and is subject to customary closing conditions, regulatory and corporate approvals, as may be required, it added.
"This partnership will accelerate our emerging market strategy for the biotech business," Joe Thomas, Chief Corporate Development Officer of Strides and Head - Biotech division said.
As per the agreement, Strides and GMS will invest an amount of USD 61.9 million taking total equity investment in Stelis to USD 78.8 million.
Till date, Strides has invested USD 16.9 million in Stelis.
"We believe that by joining our efforts on this investment we can create significant value for both our groups," GMS Holdings Chairman Ghiath Sukhtian said.
Strides Arcolab shares today closed at Rs 701.95 apiece on the BSE, up 9.20 per cent from its previous close.
