Cipla buys 60% stake in Sri Lankan firm for $14 million
The new company, acquired in a deal by Cipla's Mauritius subsidiary, will market its products in Sri Lanka
New Delhi: Pharmaceutical firm Cipla Ltd on Tuesday said it has acquired a 60% stake in a new company in Sri Lanka for $14 million (over ₹ 84 crore) to market its products in the country.
Cipla (Mauritius) Ltd, a wholly owned subsidiary of the Indian company, has signed a definitive agreement with its existing Sri Lankan distributor for the acquisition of a 60% stake in a new company, Cipla said in a filing to the BSE.
The new company will market Cipla’s products in Sri Lanka, it added.
“The consideration payable for the transaction is $14 million," the filing said, adding that the proposed acquisition was subject to regulatory approvals.
As part of its global expansion, Cipla has been active in acquisitions.
Last year, it completed the buyout of South African pharma firm Cipla Medpro South Africa Ltd for ₹ 2,707 crore.
Cipla had also acquired Croatia-based firm Celeris d.o.o., distributor of its products in that country last December.
Shares of Cipla were trading at ₹ 411.30 per scrip in the afternoon trade, down 0.56% from the previous close on the BSE.
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