Cipla to set up manufacturing facility in Iran in JV with Ahran Tejarat

Cipla Holding BV, the Netherlands-based wholly-owned subsidiary of Cipla Ltd, has entered into an agreement with Ahran Tejarat Company to form a joint venture manufacturing facility in Iran.

Cipla will initially acquire a 75-per cent stake in Iranian firm Issat Co, which is currently owned by Ahran Tejarat, for a cash consideration of €1.35 million and infuse up to €15.525 million into the JV as equity over the next one year.

The Iranian partner will own the remaining stake in Issat Company, an existing company which has a valid pharmaceutical manufacturing licence and also owns certain fixed asset, but has not undertaken any business activity since incorporation in January 1998.

Cipla Netherlands is expected to invest up to a maximum of €16.8 million in cash in the joint venture company.

The acquisition is expected to be completed by March 2017, subject to completion of conditions precedent and applicable regulatory approvals.

The joint venture company proposes to undertake manufacturing and marketing of pharmaceutical products in Iran.