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Home / Companies / News /  Lupin announces sale of Japanese arm Kyowa Pharmaceutical

Lupin announces sale of Japanese arm Kyowa Pharmaceutical

The divested business recorded revenues of 14.24 billion yen in the first half of the year.

  • The sale is subject to approvals from Japan Fair Trade Commission, shareholders of Lupin and such other approvals
  • The divested business recorded revenues of 14.24 billion yen in the first half of the year

Lupin Ltd on Monday announced the sale of entire 99.82% stake in its Japanese subsidiary Kyowa Pharmaceutical Industry Co Ltd for an enterprise value of 57.4 billion yen to Plutus Ltd, the Indian pharmaceutical company notified the stock exchanges.

Lupin Ltd on Monday announced the sale of entire 99.82% stake in its Japanese subsidiary Kyowa Pharmaceutical Industry Co Ltd for an enterprise value of 57.4 billion yen to Plutus Ltd, the Indian pharmaceutical company notified the stock exchanges.

The divested business recorded revenues of 14.24 billion yen in the first half of the year. The deal will generate net cash inflow of approximately around Rs2,103.9 crore after taxes.

The divested business recorded revenues of 14.24 billion yen in the first half of the year. The deal will generate net cash inflow of approximately around Rs2,103.9 crore after taxes.

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The sale is subject to approvals from Japan Fair Trade Commission, shareholders of Lupin and such other approvals, consents, permissions and sanctions as may be necessary.

Plutus is owned by Unison, a three-way joint venture of Unison Capital Partners IV, LPS and Unison Capital Partners IV (F). L.P. Unison is a leading private equity fund in Japan.

“The deal proceeds will be utilized to strengthen Lupin’s balance sheet as well as provide growth capital to support organic and inorganic initiatives for our focus markets," a press release sent to the stock exchanges quoted Lupin chief executive officer Vinita Gupta as saying.

Lupin said the deal will bring down its net debt to Rs1,129 crore compared to Rs4,361.8 crore as on September 30. Net debt to equity ratio shall improve to 0.08 as compared to 0.32 in the same period, the company said.

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