Financial Daily from THE HINDU group of publications
Saturday, Dec 27, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 27, 2003 |
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Corporate
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Mergers & Acquisitions Nicholas Piramal buys out Ambalal Sarabhai stake in jt venture Our Bureau
Mumbai , Dec. 26 NICHOLAS Piramal India Ltd (NPIL) today announced the buy-out of its partner, Ambalal Sarabhai Enterprises Ltd's 50 per cent stake in the joint venture, Sarabhai Piramal Pharmaceuticals Pvt Ltd (SPPL), for Rs 69.3 crore. SPPL is a 50:50 joint venture between NPIL and Ambalal Sarabhai Enterprices Ltd (ASE). NPIL had invested Rs 22.5 crore in SPPL and has received dividends aggregating Rs 24 crore until the end of fiscal 2002-03. Profits for the current fiscal will accrue fully to NPIL. "The SPPL buy-out is in line with NPIL's objective of consolidating its pharmaceuticals portfolio. This acquisition will elevate NPIL to the fourth position in the domestic market with 4.4 per cent share,'' a press release said, quoting Mr Ajay Piramal, Chairman, NPIL. The company will also improve its ranks in therapeutic segments such as pain management, CNS, respiratory and hormonal. SPPL commenced full operations in FY1999 with sales of Rs 58.75 crore. The company has 12 brands with sales over Rs 5 crore, forming over 60 per cent of its sales. Out of this five brands have sales over Rs 10 crore. SPPL's leading brands include Pentids, Esgipyrin, Tossex, Mazetoi, Resteclin and Suganril. Following this acquisition, NPIL's field force will increase to 2805, up from 2,010 at present, making NPIL the leader in India market reach. "The deal enhances the field force available for marketing of products of the two companies in eight therapeutic areas,'' the release said. NPIL's board has fixed January 12, 2004 as the record date for determining the entitlement of NPIL shareholders to receive shares to be issued by Kojam Fininvest Ltd under the `Scheme of Arrangement' that has been sanctioned by the Bombay and Gujarat High Courts. The board of ASE has also decided to acquire 70,000 equity shares of Rs 1,000 each of Synbiotics Ltd, its wholly owned subsidiary, at an aggregate price of Rs 21 crore by converting a part of the amount receivable.
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