UB Group sells Aventis stake for Rs414 crore
23 Mar 2010
Hoechst GmbH, a 100-per cent subsidiary of French pharmaceutical major Sanofi-Aventis SA, has decided to acquire UB group's 10.27-per cent stake, or 23,66,380 equity shares, in Aventis Pharma Limited for Rs1,750 per share.
Vijaya Mallya-led UB Group will collect Rs414 crore from the deal.
According to analysts, this will give the UB group the badly needed breathing space to deal with its mounting debt of about Rs14,600 crore.
The foray into aviation business, Kngfisher Airlines, had catapulted the UB group's debt by about Rs700 crore.
''Hoechst GmbH has informed the stock exchanges that they propose to acquire 2,366,380 equity shares representing 10.27 per cent of the share capital of Aventis Pharma Ltd from UB Group companies,'' the Paris-based group said in a statement.
The promoter's holding in the company, after the deal, will touch 60.39 per cent, with FIIs and others holding the balance.
A few weeks the back Sanofi-Aventis has completed its acquisition of Chattem, Inc, which is now a wholly-owned subsidiary of the Sanofi-Aventis Group (See: Sanofi-Aventis concludes Chattem acquisition).
