Nirma to buy majority stake in Glenmark Life Sciences

economictimes.indiatimes.com:

Glenmark Pharmaceuticals will sell 75% stake in its subsidiary Glenmark Life Sciences to Nirma Limited, for Rs 5652 crore, at a price of INR 615 per share, stated a company press release.

Glenmark Pharma will own 7.84% in GLS after the divestment.

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Nirma Group, Ahmedabad based detergents to cement conglomerate, is the front-runner to buy out Glenmark Life Sciences (GLS), an 82.84 per cent subsidiary of Glenmark Life Sciences, ET first reported on July 31.

Nirma is using their healthcare subsidiary Aculife Healthcare Ltd as the likely vehicle for the acquisition, ET reported.

The transaction is subject to customary closing conditions precedent, including receipt of regulatory and shareholder approvals, added the release.

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

The other contender Sekhmet Pharmaventures, a platform backed by, PAG, CX Partners and Samara Capital, did not put in their final offer after intense negotiations, ET reported.

Nirma ventured into life sciences when it acquired the ailing injectables business of Core Parenterals from its lenders in 2006-2007.

Founded by Karsanbhai Patel, the Ahmedabad-headquartered conglomerate started off with the sale of washing powder under the Nirma brand. It has been expanding from mere detergent manufacturers to other sectors like Pharma, chemicals and cement through multiple acquisitions.
Nirma had acquired Lafarge Holcim’s cement assets in India for Rs9000 crore in 2016 and Emami Cements for Rs5500