Home / Companies / Hong Kong’s Leaders Group Asia to acquire majority stake in Dr Datsons Labs

Mumbai: Hong Kong-based funding and investment company Leaders Group Asia Ltd is likely to buy a majority stake in Mumbai-based drug ingredients and formulations maker Dr Datsons Labs Ltd.

Leaders Group Asia has expressed its intent to invest in the Indian drug firm. A senior management team from Dr Datsons Labs will be shortly meeting the investment group to finalize the deal, said two people familiar with the development on Monday, requesting anonymity.

Shares of Dr Datsons surged 2.24% in morning trade on BSE on Monday, after the company informed the exchange about the outcome of its board meeting on Monday that confirmed the letter of intent for investment from Leaders Group Asia.

Dr Datsons, which manufactures and exports drug ingredients and a wide range of finished medicines to several markets in the world, will also split its bulk drugs and formulations businesses into separate companies as part of the equity deal with Leaders Group.

The drug maker, which entered into the finished dosage business after its acquisition of Prophyla Biological Pvt. Ltd in March 2010, is also present in the domestic pharmaceuticals market.

Leaders Group Asia, which has interests in equity investments as well as other business segments, may also look at other synergies including selling Dr Datsons’ products in various export markets including Africa and South America, said one of the persons familiar with the development.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout