Belgium-headquartered Eubage Laboratory, a firm which develops, manufactures and markets a broad range of nutrients and nutritional supplements, will invest $17 million (Rs 107 crore) in Mumbai-based public listed small-cap drugmaker Dr Datsons Labs Ltd, as per a stock market disclosure.
The firm said that Eubage has expressed interest to invest in the manufacturing facilities of Dr Datsons Labs and also to out-licence 20 nutraceutical products to be manufactured at its Pune formulations unit subject to audit by US FDA and to be co-marketed by both companies.
It, however, did not provide the structure of the deal and whether the investment is for a new unit which would work as a joint venture or in Dr Datsons as a company.
Dr Datsons is a small-cap firm and currently commands a market cap of around $17 million. A preferential issue at the current market price would give Eubage almost 50 per cent stake in the firm and would trigger an open offer.
On Wednesday, Dr Datsons’ scrip ended at Rs 9.91 per share on BSE, up 14.57 per cent in a strong Mumbai market.
Dr Datsons manufactures active pharmaceutical ingredients (APIs) and finished dosage forms. It also provides contract research and manufacturing services and has a strong presence in the anti-malarial API segment.
Recently, the drugmaker raised $13 million through the issue of unsecured foreign currency convertible bonds.
Dr Datsons has been negotiating with various pharma companies and other strategic investors for a potential stake sale, the company had earlier said.
Last May it said that European pharma firm Mires B.V has completed its valuation exercise as part of its interest to acquire majority stake in the Mumbai-based firm.
Dr Datsons had said Mires completed the valuation of the two plants of the company situated at Mahad and Pune and put a fair valuation of the company at Rs 350 crore of which valuation of its fixed assets stood at Rs 270 crore.
It had added that the detailed term sheet for the acquisition will be received by the company shortly.
Last month it said it has received a letter of intent for investment from Leaders Group Asia Limited, an investment firm based in Hong Kong. It had said this group has also sought to buy a majority stake in the firm. Its broad had also approved a plan to separate the company into two units through a demerger with bulk drugs entity being split out of the formulations business.
(Edited by Joby Puthuparampil Johnson)