Aurobindo to buy Trident unit for Rs135 cr

Aurobindo to buy Trident unit for Rs135 cr
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First Published: Tue, Aug 18 2009. 12 26 AM IST
Updated: Tue, Aug 18 2009. 12 26 AM IST
Hyderabad: Drug maker Aurobindo Pharma Ltd on Monday said it is buying the liquid injectables manufacturing business of Trident Life Sciences Ltd for about Rs135 crore.
Aurobindo will assume Rs96 crore of Trident’s debt and acquire equity worth Rs39 crore from its promoters, which includes P. Sarath Chandra Reddy, managing director of the Hyderabad-based Trident. Reddy is a non-executive director at Aurobindo and son of the pharma company’s key promoter and chairman, P.V. Ramprasad Reddy.
Aurobindo plans to clear the debt in the next six-nine months, said an investors’ relations official at the firm, asking not to be named. “Aurobindo expects some Rs1,000 crore of business a year from this facility in couple of years from commercial operations,” he said.
The Hyderabad-based Aurobindo reported revenue of Rs3,124.25 crore for 2008-09. Trident’s injectables facility near Hyderabad is close to 80% complete and set to begin commercial operations from the first quarter of 2010-11, the official said.
Aurobindo said in a statement that it does not require the approval of its shareholders for the Trident acquisition since the proposed investment is within limits prescribed under the Companies Act. Trident will become a 100% subsidiary of Aurobindo.
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First Published: Tue, Aug 18 2009. 12 26 AM IST