- Cipla to sell animal health business in South Africa to Ascendis Health for Rs 191 crore.
- Deal is subject to customary closing conditions.
- Cipla stock rose as much as 1.09 percent to Rs 595 as of 9:40 a.m.
Pharmaceutical firm Cipla Ltd. said it plans to sell its animal health business in South Africa and Sub-Saharan Africa for a consideration of about Rs 191 crore.
The company has entered into agreements through its wholly owned subsidiary Inyanga Trading 386 Proprietary with the group companies of Ascendis Health, Cipla said in a statement.
Under the agreements, Cipla will divest its 100 percent stake in Cipla Agrimed Proprietary, South Africa and Cipla Vet Proprietary, South Africa, it said.
"The total consideration of transaction would be 375 million rand with potential revision linked to financial year 2017 performance along with customary adjustment (within the price band of 250 million and 500 million rand) in relation working capital and net debt/cash adjustments," it said.
The deal is subject to customary closing conditions, including approval from competition commission of South Africa and is expected to close in the next three months, it said.
Ascendis Health is a South Africa-based health and care brands company operating in human, plant and animal health domain.
Cipla Agrimed operates in the farm animals segment, with sales mainly attributable to agricultural cooperatives and bulk farm purchasing organisations.
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