TTK Healthcare to sell human pharma biz to Bharat Serums - Times of India

TTK Healthcare to sell human pharma biz to Bharat Serums – Times of India

[ad_1]

MUMBAI: Chennai-based TTK Healthcare is set to sell its human pharma division to Mumbai-based Bharat Serums and Vaccines (BSV) for Rs 805 crore. The board of TTK Healthcare approved the sale on Monday as a going concern on a slump sale basis, according to a BSE filing.
The TTK Healthcare scrip hit a 52-week high of Rs 970 on Monday and closed nearly 8% up on the BSE. Pursuant to the approval, definitive agreements have been concluded with a special purpose vehicle, BSV Pharma, of which Miransa (an affiliate of Advent International) and Bharat Serums and Vaccines are shareholders. Once the transaction is completed, TTK Healthcare will hold 26% stake, and others the remaining. The financial structure of the deal is still being worked out.
“Definitive agreements have been concluded with BSV Pharma and Miransa (an affiliate of Advent lnternational), with the closing of the transaction contemplated thereunder being subject to the approval of the shareholders by means of a postal ballot process..”, the filing said.
The revenue of the division for FY21 was around Rs 160 crore — which makes up 25% of total turnover of the company. The company will receive 74% of the consideration by way of cash, and the balance through equity shares, each on transfer of the undertaking.
TTK Healthcare has several business divisions like consumer products, personal products, foods, medical devices, animal welfare products, prescription-based human pharmaceuticals, formulations, etc. The core competence of the company relates to various divisions other than human pharma formulations, and it intends to invest in and expand those businesses, the filing added.
“Therefore, the board decided to hive-off the division for a consideration that is considered attractive and use the proceeds in such areas where core competency is present and for the benefit of all stakeholders”, it said.



[ad_2]

Source link

Leave a Comment

Your email address will not be published.