Posted by : Varun Doshi
On : 03 July 2014
Comments : 0
Views : 1543
Cipla Ltd has signed a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen (owned by a UAE-based parent company) for $21 million. This is second buyout of Cipla this month. Two weeks ago, Cipla had acquired 60% stake in a Sri Lanka-based company for $14 million.
According to the company, buyout in Yemen will secures company's presence in a fast growing market, where it already has a leading position with over 200 products. The deal includes additional considerations to be paid over the next three years on achievement of agreed milestones.
Cipla shares are traded at Rs 422 intraday, up by 1.07% on BSE.
On June 17th, Cipla had announced acquisition of Sri Lankan company, which would market Cipla's products in the country. Cipla had entered this transaction through its wholly owned subsidiary - Cipla (Mauritius) Limited.