Generic drugs maker Strides Arcolab Ltd has informally offered to buy the remaining 43 per cent stake in its Australian venture, Ascent Pharmahealth Ltd. The final outcome is expected to be known in the next 90 days.
Ascent, now listed on the Australian Stock Exchange, would be de-listed. The Australian company has been valued at $100 million. For the 43 per cent share it plans to buy, Strides would make a cash offer of Australian $35 million (nearly Rs 145 crore at current exchange rates), proposing to buy the stake at a premium rate of $0.35 per share.
The Bangalore-based company plans to include Ascent's founder-CEO, Mr Dennis Bastas, as an equity participant in its formal offer and also retain the executive management team. The money for the acquisition would come both from company resources and debt.
The attraction in Ascent apparently lies in its large complementary generic medicine chest, besides prescribed and freely sold (OTC) skin care products. It is the fourth largest non-patent drug maker in that country. The plan, if it came through, would make Strides the largest Indian company there. Early this month, Strides bought back its Brazilian facility for $75 million from Aspen Pharmacare of South Africa.
crackcrackCompany Name | CMP |
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Sun Pharma Inds. | 1808.50 |
Dr. Reddys Lab | 1342.45 |
Cipla | 1472.45 |
Lupin | 2147.55 |
Zydus Lifesciences | 973.90 |
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