Drugmaker Strides Arcolab Ltd has signed up a definitive contract to raise its holding stake in Genepharm Australasia to 55 percent for Rs 230.80 crore.

According to the deal, Strides will vend its Australian and Asian businesses in exchange for the issue of shares in Genepharm.

The company said, “On successful completion of the Genepharm transaction, Strides may emerge with a shareholding of approximately 55 per cent of the expanded capital base of Genepharm.”

Strides had said in February that the Australian and Asian business stood at A$65 million. The recent purchase consideration will reduce Strides business value to A$61.0 million.

In return, Strides will acquire an equity stake in Genepharm.

The issue price of the shares paid to Strides as purchase consideration was reduced to 0.55 Australian dollar on the back of the recent trading outcomes and share price performance of Genepharm.

The original share price that was proposed in the heads of agreement on February 10, was 0.60 Australian dollar per share.

Strides has acquired a 17.7% stake in the Australian firm through its shareholders in Cyprus. Presently, Strides holds 2.1 per cent stake in Genepharm through one of its associates and when this is added with the said 17.7 per cent stake, Strides' total relevant interest in Genepharm goes up to 19.8 per cent.