Companies

Cadila Healthcare gets board nod for amalgamation

Our Bureau Ahmedabad | Updated on December 02, 2019 Published on December 02, 2019

Representative image

Scheme of amalgamation cleared for four wholly-owned subsidiaries with parent

The Board of Directors of Cadila Healthcare (CHL) on Monday approved amalgamation of four wholly-owned subsidiaries engaged in manufacturing and marketing of pharma products with the parent.

The scheme of amalgamation is for Zydus Technologies (ZTL), Alidac Pharmaceuticals (APL), Liva Pharmaceuticals (LPL) and Dialforhealth India (DHIL) with Cadila Healthcare.

The move is aimed at “consolidation of the pharmaceutical business and simplification of the corporate structure to avoid duplication of effort and to reduce the overheads and costs of managing separate entities,” the company informed in a regulatory filing on Monday after the board meeting.

While ZTL, APL and LPL are engaged in manufacturing and marketing of pharmaceutical products, the principal business of DHIL is operating retail pharmacy stores. However, at present the company does not operate any retail pharmacy stores.

The net worth as on September 30, 2019 is reported at Rs 9,301 crore for Cadila Healthcare, Rs 90.97 crore for APL, Rs 263.42 crore for LPL and Rs 14.79 crore for DHIL, while ZTL’s net worth is reported negative at Rs 40.72 crore.

The turnover for CHL as on September 30, 2019 is reported at Rs 3,026.5 crore, for ZTL Rs 9.9 crore, APL Rs 52 crore, LPL Rs 3.3 crore and DHIL Rs 0.7 crore, the company reported.

There is no cash consideration in the amalgamation and the equity shares and preference shares of ZTL, APL, LPL and DHIL held by CHL will stand cancelled upon the scheme of amalgamation coming into effect. The same is subject to necessary approvals / sanctions from the National Company Law Tribunal bench at Ahmedabad or such other competent authority, shareholders and creditors of CHL, ZTL, APL, LPL and DHIL, if applicable, it stated.

Shares of Cadila Healthcare traded at Rs 254 in morning trades on Monday, marginally down from its previous close on the NSE.

Published on December 02, 2019
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