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Our Bureau

Mumbai , Jan. 31

THE board of directors of Elder Pharmaceuticals has approved to make a preferential allotment to Citigroup Venture Capital International (CVCI)..

Elder has decided to issue 12,80,000, or eight per cent, equity shares at a price of Rs 180 per share to CVCI, acting through Citicorp International Finance Corporation, the company told BSE last week.

Similar clearances were also got for Italy's Acraf SpA and Bahrain's TAIB Bank and together with CVCI, the three organisations will be picking up over 10 per cent in Elder Pharma, officials with the domestic drug company told Business Line.

The deal is expected to add to add Rs 26 crore to Elder's kitty and company officials said that Elder would partly utilise this to finance its new production facilities in Uttaranchal and Himachal Pradesh.

Part of the funds would also be to create a war chest to support acquisition plans, the official said, without divulging details.

The deal would be put forward for shareholder clearance at an extraordinary general meeting scheduled to be held later next month, the official said.

Earlier last year, Acraf SpA had picked up 10 per cent stake in Elder and the additional equity that has been cleared at last week's meeting is to maintain the 10 per cent on the expanded equity, the Elder official said.

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Elder Pharma board okays pref allotment to Citigroup

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