FIPB clears 12 FDI proposals worth Rs 343 cr, but Mylan Inc case still in cold storage

Written by Press Trust of India | New Delhi | Updated: Aug 7 2013, 23:14pm hrs
The Government of India has cleared 12 FDI proposals worth Rs 343 crore and kept on hold the decision on US-based Mylan Inc's proposal to acquire an Indian pharma company.

"Based on the recommendations of the foreign Investment Promotion Board (FIPB) in its meeting held on July 5, the government has approved 12 proposals of foreign direct investment amounting to Rs 343.39 crore," a statement said.

However, the decision on Rs 5,168 crore proposal of Mylan Inc to acquire an Indian pharma company engaged in manufacture of generic pharma products was "kept in abeyance" till the formulation of the revised FDI policy by DIPP.

The Department of Industrial Policy and Promotion (DIPP) is in the process of finalising its FDI policy on brown field pharma projects involving transfer of control.

According to a 'Share Purchase Agreement', Mylan would acquire entire issued and outstanding share capital of Agila Specialities Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab. Agila would be acquired by Mylan directly or through one of its subsidiaries.

The agreement was entered between Mylan, Strides Arcolab and its two promoter entities -- Arun Kumar and Pronomz Ventures LLP -- in February, this year.

The proposals which were cleared by the FIPB include that of Sutures (I) Pvt Ltd to increase FDI holding in the company by another 26 per cent, from the current 35.28 per cent worth Rs 160 crore.

The other proposals which were approved include that of BNP Paribas, Total Prosthetics & Onthotics, Imperial Cancer Hospital and Research, and Life Positive Pvt Ltd.

Besides, the board at its meeting deferred four proposals and rejected three.

Also the proposal of Symbiotec Pharmalab worth Rs 330 crore for transfer of shares to a foreign company has been kept in abeyance pending DIPP policy on FDI in pharma.

The FIPB also kept in abeyance 6 proposals, including that of Franklin Templeton Asset Management to set up an Alternative Investment Fund (AIF) in India. PTI JD TVS 08061914