Global pharmaceutical company Glenmark Pharmaceuticals Limited has forged an agreement with Nirma Limited to divest 75% stake in its subsidiary Glenmark Life Sciences Limited.
Under the agreement, Glenmark Pharma will divest the stake to Nirma at a price of Rs 615 per share, aggregating to Rs 5,651.5 crore.
Following the divestment, Glenmark Pharma will retain a 7.84% ownership stake in Glenmark Life Sciences. The transaction between the firms is subject to customary closing conditions precedent.
In accordance with the terms of the deal, Nirma Limited will make a mandatory open offer to all public shareholders of GLS. The exclusive financial advisor to Glenmark Pharma and GLS on this transaction was Kotak Investment Banking, while S&R Associates acted as legal advisor to Glenmark Pharma. Trilegal acted as the legal advisor to GLS.
Talking about the divestment, Glenmark Pharmaceuticals Chairman and Managing Director Glenn Saldanha called the transaction “strategic”, adding it marks a “significant milestone in shaping an independent growth trajectory for GLS”.
Glenmark Life Sciences Managing Director and CEO Dr Yasir Rawjee called the deal an opportunity to further strengthen its position in the API industry and continue the growth trajectory.
