Wockhardt’s deal to sell nutrition biz to Abbott called off

Wockhardt’s deal to sell nutrition biz to Abbott called off
PTI
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First Published: Thu, Apr 01 2010. 12 07 PM IST
Updated: Thu, Apr 01 2010. 12 07 PM IST
New Delhi: Debt-ridden pharma firm Wockhardt on Thursday said its estimated Rs650-crore deal to sell nutritional business to global health company Abbott has been terminated, eight months after announcing an agreement.
Wockhardt, in a statement, said that the company and Abbott have “jointly decided to terminate the nutritional business agreement signed by them in July 2009.”
The company, however, did not specify the reasons for terminating the deal.
Wockhardt’s nutrition category comprises brands like Farex, Dexolac, Nusobee infant formulas and Protinex.
In July 2009, Wockhardt had announced an agreement with global health firm Abbott to sell off its nutrition businesses as it looked to raise funds to repay debt.
While the value of the deal was not officially announced, it was estimated to be worth around $130 million or about Rs650 crore.
Wockhardt, which is facing debts to the tune of Rs3,700 crore, had announced plans to raise Rs790 crore through divestment of its non-core business by 2015 as part of its CDR programme.
Shares of Wockhardt were trading at Rs 142.60 on BSE, up 2.81% from previous close.
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First Published: Thu, Apr 01 2010. 12 07 PM IST
More Topics: Wockhardt | Farex | Dexolac | Nusobee | Abbott |