Glenmark to divest 75 pc stake in Glenmark Life Sciences to Nirma for Rs 5,651.5 cr

We will continue to operate as an independent API company under the new ownership of Nirma Ltd. I see this as an opportunity to further strengthen our position in the API industry and continue the growth trajectory, he added.GLS is a developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients APIs in chronic therapeutic areas.It supplies products to many leading global generic pharmaceutical firms, and works with 16 of the 20 largest generic companies globally.Ahmedabad-based Nirma is known for its detergents, soap and dishwashing bars.

Glenmark Pharmaceuticals on Thursday said its board has approved to divest 75 per cent stake in its subsidiary Glenmark Life Sciences to Nirma Ltd for Rs 5,651.5 crore.

As per the definitive agreement, the Mumbai-based drug maker will offload a 75 per cent stake in Glenmark Life Sciences (GLS) to Nirma Ltd at a price of Rs 615 per share.

After the divestment, Glenmark will own just a 7.84 per cent stake in GLS, the drug firm said in a statement.

The transaction is subject to customary closing conditions precedent, including receipt of regulatory and shareholder approvals, it added.

Pursuant to the transaction, Nirma Ltd will make a mandatory open offer to all public shareholders of GLS.

''This deal aligns with our strategic intent of moving up the value chain to become an innovative/brand-led organisation, with continuous focus on our core therapeutic areas of dermatology, respiratory and oncology,'' Glenmark Pharmaceuticals Chairman and Managing Director Glenn Saldanha said.

It also presents an opportunity for the company to strengthen shareholder value through deleveraging and enhancing the overall return profile, he added.

GLS Managing Director and CEO Yasir Rawjee said the announcement marks the next step in the journey of the company that will accelerate growth and help create more value for stakeholders in the long term. ''We will continue to operate as an independent API company under the new ownership of Nirma Ltd. I see this as an opportunity to further strengthen our position in the API industry and continue the growth trajectory,'' he added.

GLS is a developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas.

It supplies products to many leading global generic pharmaceutical firms, and works with 16 of the 20 largest generic companies globally.

Ahmedabad-based Nirma is known for its detergents, soap and dishwashing bars. It is also into the manufacturing of industrial products like soda ash, linear alkyl benzene, alfa olefin sulphonates, fatty acid, glycerine and sulphuric acid.

Glenmark shares on Thursday ended 3.32 per cent down at Rs 828.05 apiece on the BSE.