Cipla To Get Hold Of 2 Undertakings For Rs 820 Mn

Cipla To Get Hold Of 2 Undertakings For Rs 820 MnCipla has declared that its board has sanctioned the acquirement of two manufacturing plants that hitherto were manufacturing formulations and bulk drugs/intermediates exclusively for Cipla for Rs 820.2 million as follows:

Purchase of a company worth Rs 513.8 million, which has a high-tech formulations manufacturing plant at Sikkim with capacities to produce tabs, capsules, oral liquids, jabs, liquid and ointments. The company is entitled for a ten year tax holiday under the Income Tax Act, 1961 beginning from 2009-10.

Acquirement of an undertaking for Rs 306.4 million as slump sale arrangement. The undertaking is situated at Kurkumbh (District Pune) and owns US FDA & WHO sanctioned manufacturing plant for bulk drugs/intermediates.

These acquirements are being done with a purpose to exercise control over operations of these facilities. Divisions operated by relatives of the promoters are major stockholders in the company/plants proposed to be acquired. The aggregate consideration for both acquirements was decided on the basis of valuation reports offered by Grant Thornton and fairness opinions provided by Kotak Mahindra Capital Company.

Shares of the company fell 1.26%, to end the week at Rs 341.80. The total volume of shares traded stood at 571,427 at the BSE (Friday). (With Inputs from Agencies)