Last Updated : Monday, September 23, 2019 21:54:54

ALKEM LABS acquires subsidiary co CACHET PHARMA paying 52 Cr INR

MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT – In a regulatory update submitted to the Indian Stock Exchanges, Mumbai headquartered Alkem Laboratories Ltd said of having acquired its own subsidiary company for cash consideration of 520 million (~52 Crore) rupees with an intent to consolidate quality control and timely supplies for the products manufactured at subsidiary facility.

In a regulatory company filing as submitted to the Indian Bourses, it read that, Alkem Laboratories Ltd (the “Company”) has acquired an undertaking (“Undertaking”), as a whole and on a going and running concern basis from Cachet Pharmaceuticals Private Limited, a subsidiary of the Company for cash consideration of 520 million (~52 Crore ~ Rs. 51,85,00,000/- ~ Rupees Fifty-One Crores Eighty-Five Lakhs only).

The said acquisition qualifies as a related party transaction, as the acquisition has been carried out at arm’s length.

The promoter/promoter group/group companies have an interest in the Undertaking being acquired, as the Undertaking has been acquired from Cachet Pharmaceuticals Pvt Ltd, a subsidiary of Alkem Laboratories Ltd.

The Company was getting some of its liquid products like syrups, etc. manufactured from the said undertaking and was procuring other liquid items from other parties as the Company did not have any undertaking to produce liquid pharmaceutical products.

Hence, it was proposed to acquire the said Undertaking with a view to manufacture most of its requirement of liquid products at one place for better control over the quality of the products and timely supplies of the products by the Company.

Approval for the acquisition has been accorded by the Department of Commerce & Industries, Government of Sikkim, on September 19, 2019.

The expected date of completion of acquisition, On or before September 30. 2019, which is subject to closing conditions.


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