Zydus Cadila said on Wednesday it has signed agreements to sell one of its animal health business companies to Multiples Alternate Asset Management led consortium for Rs 2,921 crore. The consortium includes Canada Pension Plan Investment Board and RARE Enterprises. The slump sale transaction is expected to be complete within 90 days.
Zydus Animal Health and Investment (ZAHL) has entered into a business transfer agreement and other ancillary agreements (together definitive agreements) for disposal of its Animal Healthcare Established Markets Undertaking to Zenex Animal Health India by way of a slump sale, without values being assigned to the individual assets and liabilities on debt free and cash free basis, Cadila Healthcare said in a regulatory filing.
Zydus Animal Health and Investments Ltd (ZAHL) has leadership position across a wide spectrum of therapeutic and nutritional products for livestock and poultry animal segments. It employs 700 people and has one manufacturing facility in Haridwar.
The transaction to sell one of the two business undertakings of ZAHL involves transfer of immovable assets, movable assets, inventory, brands and intangible assets, contracts, licenses and permissions, business records, employees along with employee benefit funds, insurance policies, other assets and assumed liabilities.
"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," said Managing Director Arun Atrey.
"We expect this process to be seamless for our customers, suppliers and other stakeholders with no disruption to our operations," he said in a statement.
ZAHL has another animal healthcare business undertaking which is expected to start operations in the United States and certain European countries.
Zydus Healthcare shares were up 28.10 at Rs 657.95 apiece at 1.21 PM.
