Cadila Healthcare, one of the leading pharmaceutical companies, announced that Zydus Animal Health and Investments (ZAHL) a wholly owned material subsidiary of the company, has entered into a Business Transfer Agreement (BTA) and other Ancillary Agreements (Definitive Agreements) to sell and transfer its Animal Healthcare Established Markets Undertaking ('Undertaking' or Zydus AH) to Multiples Alternate Asset Management (Multiples) led consortium.
Zydus AH is the animal health business of ZAHL focused on India and certain other countries.
The consortium, including Canada Pension Plan Investment Board (CPP Investments) and RARE Enterprises (RARE), has agreed to purchase the Undertaking through an SPV controlled by them, in the name of Zenex Animal Health India.
The deal is to sell one of the two business undertakings of ZAHL, called Animal Healthcare Established Markets Undertaking on a slump sale basis as a going concern, for a lump sum consideration of Rs. 29.21 billion on a cash free and debt free basis, subject to certain closing date adjustments and other conditions.
Pankaj Patel, Chairman, Cadila Healthcare, said, "Over the last 3 decades Zydus AH has grown to become a pioneer and market leader in the Indian animal health industry. With Multiples and its consortium partners committed to growing the business, we are sure that Zydus AH will continue to grow and strengthen its position in the industry."
Arun Atrey, Managing Director, ZAHL said, "The Zydus AH business has a very strong franchise in the market and is extremely well positioned to take advantage of the continued industry growth in India and select exports markets. We expect this process to be seamless for our customers, suppliers and other stakeholders, with no disruption to our operations."
Shares of the company gained Rs 22.9, or 3.64%, to trade at Rs 652.60. The total volume of shares traded was 877,140 at the BSE (11.48 a.m., Wednesday).