Bangalore-based Strides Arcolab has raised its stake in Australian company Genepharm Australasia to 55% to boost its presence in the Asian and Australian markets.
Sees closing the deal by May
MUMBAI: Bangalore-based Strides Arcolab has raised its stake in Australian company Genepharm Australasia to 55% to boost its presence in the Asian and Australian markets.
The drugmaker had held about 19.8% in Genepharm, which is listed on the Australian Securities Exchange. This includes the 17.7% it acquired for about A$15 million from the company’s largest shareholder Genepharm Asia Pacific Enterprises Ltd.
Strides will transfer its Australian and Asian businesses (except Indian business), valued at about A$65 million, to Genepharm in return for a 44% stake in the latter. The acquired company will hence become subsidiary of Strides with all the Asian and Australian business merged in it.
Ravi Seth, Group CFO at Strides Arcolab, said: “The annual sales from this new entity are expected to touch about A$100 million for the year to June.”
Arun Kumar, managing director of Strides Arcolab, said in a press release: “We expect Genepharm’s sales and marketing expertise will help accelerate the growth of our Australian and Asian businesses.”
The deal is expected to close in the month of May. The effective cost of the deal comes to about A$0.6 per share. The deal is expected to add about Rs6 a share to Strides’ consolidated earnings, Kumar told Reuters.
Strides’ Australasian business which manufactures and markets prescription and over-the-counter drugs in Singapore, Malaysia, Thailand, Vietnam, Hong Kong and Australia had revenue of A$32.5 million last year.
Genepharm distributes a wide range of pharmaceutical and over-the-counter products in Australia where it has 11% market share. For the year to June 2007, the company posted revenue of A$55 million and operating profit of A$5 million.
b_tinesh@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}