Zydus Lifesciences has signed a Share Subscription and Shareholders’ Agreement (SSSHA) with Sunshine Healthcare Lanka and Zydus Sunshine Lifesciences to acquire a 50% stake in the newly incorporated company.
Under the agreement, Zydus will invest up to $5 million in one or more tranches through a cash subscription. Zydus Lifesciences in their regulatory filing said that Zydus Sunshine Lifesciences will become a 50:50 joint venture between Zydus and Sunshine Healthcare Lanka following the transaction.
JV to set up pharma manufacturing facility in Sri Lanka
The joint venture plans to establish a state-of-the-art pharmaceutical manufacturing facility in the Horana Export Processing Zone in Sri Lanka.
The facility will manufacture pharmaceutical products locally, helping strengthen domestic production and reduce the country’s dependence on imported medicines. The project is also expected to improve access to quality medicines and enhance supply chain resilience.
Zydus to have equal board representation
The board of the joint venture will comprise six directors, with Zydus and Sunshine Healthcare each nominating three directors.
Zydus will appoint the chairperson of the board. The chairperson will have a casting vote on all matters except reserved matters. Any changes to the company’s capital structure will require approval from both partners.
Zydus said it expects to complete the share subscription within 90 working days from the execution of the agreement.
The company clarified that the transaction is not a related-party deal and that none of its promoters, promoter group entities, or group companies have any interest in the acquisition.
About Zydus Sunshine Lifesciences
Zydus Sunshine Lifesciences, part of Zydus Lifesciences, was incorporated on May 30 and currently has no business turnover as it is a newly formed company.
The company will primarily focus on manufacturing pharmaceutical products in Sri Lanka.
Zydus Lifesciences share price
The share price of Zydus Lifesciences has gained 20.36% so far this year.