New Delhi, Feb 8 (UNI) Drugmaker Strides Arcolab Ltd today said it has entered into an agreement to acquire 55 per cent stake in Genepharm Australasia Ltd (Genepharm).
The transaction will include Bangalore-based Strides vending its Australian and Asian business in exchange for the issue of shares in Genepharm, said a statement.
Strides had earlier acquired a over 17.7 per cent of the issued shares in ASX-listed Genepharm under a share acquisition agreement with a group of Genepharm shareholders based in Cyprus that are associated with Genepharm's largest shareholder, Genepharm Asia Pacific Enterprises Ltd ("GAPE Transaction").
When added to the existing 2.1 per cent of Genepharm shares over which Strides currently has a relevant interest, the GAPE Transaction takes Strides' total relevant interest in Genepharm issued shares to about 19.8 per cent.
The combined regional businesses are expected to have revenues of about 100 million Australian dollars on closing of the Genepharm Transaction.
Strides Vice Chairman and Managing Director Arun Kumar in a statememy said ''We expect that Genepharm's sales and marketing expertise will help accelerate the growth of the Australian and Asian businesses. Combined with Strides' manufacturing strength and product offering, we are confident that this will prove to be a successful partnership that will create value for the shareholders in both companies.'' Strides' businesses in Australia and Asia are involved in the manufacture and distribution of pharmaceutical prescription and over the counter ("OTC") products across the region, with sales in Singapore, Malaysia, Thailand, Vietnam, Hong Kong and Australia.
For the year ending June 30, 2008, these businesses are forecast to generate revenue of 32.5 million Australian dollars.
UNI PBB AK HT1908