Drug maker Strides Arcolab on Tuesday said it is in talks with Ascent Pharmahealth, listed on the Australian Stock Exchange, for acquiring a minority stake in the company.
Bangalore-based Strides Arcolab already holds 57 per cent stake in Ascent Pharmahealth Ltd. (APH).
The company “is in discussions with Ascent Pharmahealth regarding a potential take-private,” it said in a statement to the Bombay Stock Exchange.
The indicative proposal involves a cash offer of 0.35 Australian dollar per share of Ascent Pharma that represents an implied enterprise value of 100 million Australian dollars for the company, the Indian firm said.
However, Strides said that no formal proposal has yet been put forward and that “these discussions may or may not lead to an agreed transaction.”
Strides is seeking to include the founder and CEO of APH Dennis Bastas as an equity participant in any formal proposal, it said.
The company is also looking to secure the retention the executive management team of Bastas, Strides added.
Shares of Strides rose 1.26 per cent and were quoting at Rs. 325.70 in the morning trade on the BSE.
