Business Daily from THE HINDU group of publications
Wednesday, Aug 29, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Aug 29, 2007 ePaper |
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Corporate
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Mergers & Acquisitions Elder Pharma acquires Bulgarian co for Rs 28 cr
Our Bureau Mumbai, Aug 28 Elder Pharmaceutical Ltd has acquired 51 per cent stake in Biomeda Group of Bulgaria in an all-cash deal worth €5 million (about Rs 28 crore). The deal comes a little over a month after Elder picked up 20 per cent equity in London-based Neutra Health Plc. Biomeda is among Bulgaria’s top 10 distributors and manufacturers, with a turnover of €10-12 million, an Elder Pharma statement said. It is a manufacturer of pharmaceutical oral dosage formulations. Mr Alok Saxena, Director-International, Elder Pharma, told Business Line that the deal allows it to make and distribute its products in Bulgaria. It also gets auto registration in the CIS markets, he added. Elder is gradually increasing its geographic spread across the globe, he said, with an acquisition in Africa (Ghana), marketing offices in South-East Asia and the recent developments in Europe. “Elder got attracted to Bulgarian market for skilled labour; it has an advantage in terms of lower labour cost compared to other European countries.” He added: “Being a member of European Union, patent rules are in line with EU standards. It offers a competitive tax regime – corporate profit tax and VAT are among the lowest in Central and Eastern Europe – and low production costs.” The Mumbai-based drug company will fund the acquisition through its recently approved FCCB of $50 million. Elder Pharma shares were up 2.15 per cent at Rs 384.75 on Tuesday.
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