Mumbai-based Cipla Ltd is acquiring two facilities, which were exclusively manufacturing formulations and bulk drugs/intermediates for the pharma major, for an aggregate consideration of Rs 82 crore. The board of directors have approved the deal at a meeting today.
The formulations manufacturing facility at Sikkim, with capabilities in tablets, capsules, oral liquids, injections, liquid and ointments/creams, will be bought for Rs 51.38 crore. The facility is eligible for a 10-year tax holiday under the Income Tax Act, 1961 commencing from 2009-10.
The second facility, which Cipla is acquiring, is located at Kurkumbh (Pune) and has USFDA & WHO approved manufacturing facility for bulk drugs/ intermediates. The acquisition will be made for Rs 30.64 crore by way of slump sale arrangement.
Entities controlled by relatives of the promoters are major shareholders in the company/facilities proposed to be acquired. The aggregate consideration for both acquisitions was determined on the basis of valuation reports provided by Grant Thornton and fairness opinions provided by Kotak Mahindra Capital Company Ltd, said a statement from Cipla.