Sun Pharma to acquire majority stake in Russian company
DSIJ Intelligence / 23 Nov 2016
Sun Pharmaceutical Industries (SPIL) has entered into an agreement to acquire 85.1 per cent stake in JSC Biosintez. JSC Biosintez is a Russian pharmaceutical company engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region.
Sun Pharmaceutical Industries (SPIL) has entered into an agreement to acquire 85.1 per cent stake in JSC Biosintez. JSC Biosintez is a Russian pharmaceutical company engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region. The transaction will be done in cash consideration, subject to approval by Russian Federal Anti-Monopoly Service. SPIL’s acquisition will be completed by the end of 2016.
On the financial front, JSC Biosintez’s sales stood at Rs 623 crore in 2013, Rs 459 crore in 2014 and Rs 356 crore in 2015. SPIL will be paying an amount of around Rs 165 crore as consideration for equity shares acquired. The company would also assume a debt of about Rs 247 crore as part of this transaction. SPIL’s objective of the acquisition is to acquire the product portfolio and local manufacturing capability in Russia which would help in expanding company’s presence in Russia and serving Russia pharmaceutical market more effectively.
The share price of SPIL increased one per cent on bourses in early trades and is trading at Rs 693.9 on intraday basis.
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