Wockhardt Demerger Gets Nod

Shareholders of pharmaceutical major Wockhardt Ltd approved the scheme of demerger of its non-pharma businesses into a separate company at a meeting held here on Tuesday.

The results of the ballot were announced yesterday in which shareholders voted unanimously in favour of the scheme. The demerger is based on recommendations by McKinsey & Co.

According to the scheme, all non-pharma businesses such as agro-chemicals and nutritionals will be demerged into a separate company called Wockhardt Life Sciences. The ratio for the demerger has been fixed as 1:1. For every 100 shares held by a shareholder, an additional 100 shares of the new company will be issued.

 

In a related development, at a meeting of the board of directors of Wockhardt Healthcare in Chennai yesterday, the directors approved the amalgamation of Wockhardt Healthcare into the new Wockhardt Life Sciences. Based on the amalgamation scheme prepared by the chartered accountant firm, RSM & CO, a ratio of 5:1 has been finalised. This implies that shareholders of Wockhardt Healthcare will receive one share of Wockhardt Lifesciences for every five shares of Wockhardt Healthcare.

The proposed amalgamation would bring about a total integration of IV fluid manufacturing facilities raising the capacity to 90 million bottles. This will further create synergies and economies for growth in the IV business, a press release said.