Strides to buy 55% in Australian firm Genepharm

Written by Agencies | Mumbai, April 30: | Updated: Apr 30 2008, 17:23pm hrs
Pharmaceutical firm Strides Arcolab on Wednesday said it will acquire a majority stake of 55 per cent in ASX listed Genepharm Australasia for 61 million Australian dollar (about Rs 230.80 crore) in an exchange for its Asian and Australian businesses.

Strides Arcolab has signed definitive agreements with Genepharm Australasia to this effect, the company said in a filing to the Bombay Stock Exchange.

"On successful completion of the Genepharm transaction, Strides may emerge with a shareholding of approximately 55 per cent of the expanded capital base of Genepharm," the company added.

The purchase consideration of Strides' Australian and Asian operations is reduced from 65 million Australian dollar to 61 million Australian dollar. However, Genepharm proposes to assume around 4.1 million Australian dollar of existing debt within the business.

The issue price of the shares paid to Strides as purchase consideration was reduced to 0.55 Australian dollar on the back of the recent trading results and share price performance of Genepharm.

The original share price that was proposed in the heads of agreement on February 10, was 0.60 Australian dollar per share.

Strides has acquired a 17.7 per cent stake in the Australian firm through its shareholders in Cyprus. Strides at present holds 2.1 per cent stake in Genepharm through one of its associates and when this is added with the said 17.7 per cent stake, Strides' total relevant interest in Genepharm goes up to 19.8 per cent.