Glenmark Pharmaceuticals Ltd (GPL) has agreed to divest 75% stake in its subsidiary Glenmark Life Sciences to Nirma Limited at a price of ₹615 per share, implying an equity valuation of ₹7,535.4 cr.

75% stake for Nirma in Glenmark Life Sciences

The research-led, integrated, global pharmaceutical company has entered into a definitive agreement with Nirma Limited to divest 75% stake in its subsidiary, Glenmark Life Sciences (GLS), at a price of ₹615 per share for an aggregate consideration of ₹5,651.5 cr, subject to closing adjustments.

Glenmark Pharma will own 7.84% in GLS after the divestment. The transaction is subject to customary closing conditions precedent, including receipt of regulatory and shareholder approvals.

Pursuant to the transaction, Nirma Limited will make a mandatory open offer to all the public shareholders of GLS.

GPL expects to utilise the proceeds of the sale to repay debt and become net cash positive.

GPL to retain 7.84% equity shares

Upon the completion of the transaction and the open offer, the buyer will become the new promoter of the company. GPL will retain 9,609,571 equity shares representing 7.84% of the current issued and paid-up equity share capital of the company.

Pursuant to the transaction, GPL and the other member of the promoter group are proposed to be reclassified as public shareholders.

GPL has agreed that it shall not sell the equity shares retained by it upon the completion of the transaction until the earlier of one year from the closing under the share purchase agreement and one month from the date of compliance with minimum public shareholding requirements by the company and the buyer.

(Source: IANS)

-Edited for style

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