Mumbai-based pharma company Glenmark Pharmaceuticals today said it has entered into a definitive agreement with Nirma Limited to sell a 75% stake in its subsidiary, Glenmark Life Sciences, for Rs 5,652 crore, amounting to Rs 615/- per share.
How much will Glenmark Pharma own in GLS?
Post transaction, Glenmark Pharma will own 7.84% of Glenmark Life Sciences.
The company said the deal is subject to customary conditions precedent, including receipt of regulatory and shareholder approvals. Pursuant to the transaction, Nirma Limited will make a mandatory open offer to all public shareholders of GLS, the statement said.
Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals, said, "We are pleased to announce this strategic transaction with Nirma, which marks a significant milestone in shaping an independent growth trajectory for GLS. This deal aligns with Glenmark’s strategic intent of moving up the value chain to become an innovative/brand-led organization with a continuous focus on our core therapeutic areas of dermatology, respiratory and oncology. It also presents an opportunity for us to strengthen shareholder value through deleveraging and enhancing our overall return profile.”
Yasir Rawjee, Managing Director and CEO of Glenmark Life Sciences said, “Today’s announcement marks the next step in the journey of the company, one that will accelerate growth and help create more value for our stakeholders in the long term. We will continue to operate as an independent API company under the new ownership of Nirma Limited. I see this as an opportunity to further strengthen our position in the API industry and continue the growth trajectory.”
What will be the focus of Glenmark Pharma?
Glenmark Pharma said it will continue to focus on consistent growth across its key markets whilst having a strong emphasis on return ratios with a net cash-positive balance sheet, ultimately creating value for its shareholders.
Kotak Investment Banking acted as the exclusive financial advisor to Glenmark Pharma and GLS on this transaction. S&R Associates acted as legal advisor to Glenmark Pharma and Trilegal acted as legal advisor to GLS.