The board of TTK Healthcare Ltd. (TTKHC) has decided to hive off its human pharma division as a going concern on a slump-sale basis to BSV Pharma Pvt. Ltd. and Miransa Ltd. for ₹805 crore.
On Monday, the board approved the recommendations of the audit committee, followed by the signing of definitive agreements with BSV Pharma Pvt. Ltd. (BSV) and Miransa Ltd. (an affiliate of Advent International).
The company will receive 74% of the consideration by way of cash and by way of equity shares for the balance 26%, each immediately on transfer of the undertakingThe total value of the consideration is ₹805 crore, subject to adjustments for working capital and other customary adjustments as on the date of transfer.
The core competence of TTKHC relates to various divisions other than human pharma formulations and it intends to invest in and expand those businesses, TTKHC said in a regulatory filing.
TTKHC has several business divisions such as consumer products, personal products, foods, medical devices, animal welfare products, prescription-based human pharmaceuticals formulations.
Therefore, the board has decided to hive-off the human pharma division for a consideration that is considered attractive and use the proceeds in such areas where core competency is present and for the benefit of all stakeholders.
During FY21, the human pharma division had posted a revenue of about ₹160 crore (25% of total turnover of the company).
