Strides Shasun Limited has decided to sell its full-owned subsidiary Strides Chemicals Private Limited (formerly known as Perrigo API India Private Limited) to Solara Active Pharma Sciences.
The transaction involves a cash consideration of ₹131 crore. This number was arrived at by independent valuers.
The transaction is, however, subject to customary closing conditions, including approval by the shareholders of both the companies.
Strides Chemicals is involved in the business of developing and manufacturing active pharmaceutical ingredients (APls).
``At a consolidated level, Strides Chemicals contributes 0.5% of the revenue during the 9 months ended December 31, 2017,’’ according to a filing by Strides Shasun with the stock exchanges
The transaction has already been approved by the board of directors of Strides Shasun.
The transaction is expected to be completed by the second quarter of this financial year.
Solara is a public limited company with its registered office in Mumbai.
``This transaction is deemed to be a related party transaction as Arun Kumar, executive chairman and promoter of Strides Shasun, is also one of the promoters of Solara,’’ the company said.
However, it asserted that the transaction was at arm's length and based on valuation determined by an independent valuer.
``Strides Chemicals, through its long-term development and manufacturing agreement with Solara, will get a 'most favoured customer' status for all the DMFs (drug master files), including exclusive DMFs, required for the integrated formulations portfolio. The divestment will help Strides become leaner, while retaining supply chain security for the formulations portfolio,’’ the release said.
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