Cipla to acquire formulations maker Meditab for Rs133.35 crore
25 August 2010
Cipla Ltd has agreed to acquire mid-size formulation manufacturing company Meditab Specialities Pvt Ltd, for an aggregate consideration of Rs133.35 crore.
The board of directors of the company today approved the acquisition of Meditab, a major manufacturer of medical formulations with facilities at multiple locations.
The acquisition of Meditab's manufacturing facilities would also result in improvements in operational and cost efficiencies for Cipla, the company said in a filing with the Bombay Stock Exchange (BSE).
Meditab has invested in expansion of its API / intermediates international business through setting up of a manufacturing facility in China.
Besides, the acquisition would bring additional business opportunity in Africa by leveraging on local manufacturing facility in Uganda and extending the company's existing strategic relationship for research and development of stem cell-based products having facilities in India and Malaysia, through equity participation.
Meditab is majority controlled by its promoter group and relatives of the promoters.
Grant Thornton prepared the valuation report while Kotak Mahindra Capital Company Ltd provided the fair value opinion, Cipla said in its release.
The Cipla board also declared a special interim dividend of 80 paise per equity share (face value of Rs2 per share) for the financial year ending 31 March 2011 to commemorate the 75th anniversary of the company. This would involve a total payout, inclusive of dividend tax, of about 75 crore, the company said.