Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Stock Report

| More

Sanofi India Ltd announces slump sale and transfer of Ankleshwar manufacturing facility

Posted On: 2019-09-11 11:56:35

The Board of Directors of Sanofi India Limited (the Company) at its meeting held on 10th September 2019 approved a transaction for the slump sale and transfer of the manufacturing facility of the Company at Ankleshwar, Gujarat to Zentiva Private Limited for a consideration of Rs. 2,617 million, subject to customary working capital adjustments. This transaction is subject to approval of the members, which will be initiated by the Company through a postal ballot process and few other conditions as defined under the Business Transfer Agreement.

In 2018, as part of a global transaction between Sanofi Group and Advent International, Advent acquired Zentiva, Sanofi Group's European generics business. Following this transaction, Zentiva continued to source products from the Company (through Sanofi group) for its generics business pursuant to a five-year supply agreement (ending in 2023). In view of this transaction, the commercial part of this business was divested by Sanofi group to Advent, while the manufacturing assets continued to be in the Company.

Having received an offer from Zentiva to acquire its manufacturing facility in Ankleshwar, the Company agreed to explore this opportunity as it was in line with its' broader strategic direction. In particular, (i) it was an opportunity to address the excess and unutilized manufacturing capacity that would have remained at the end of the supply agreement, (ii) it supported the focus on manufacturing Sanofi branded products rather than manufacturing for third parties, and (iii) it would improve asset efficiency ratios.

The Board has also taken into consideration the valuation report issued by Deloitte Touche Tohmatsu India LLP and a fairness opinion on such valuation issued by ICICI Securities Limited.

Given the above and considering that the two companies share similar values and commitment towards serving patients and their employees, the Board of Directors of Sanofi India Limited approved this transaction in the long-term interest of all stakeholders.

After closing of the transaction and receipt of the consideration, the Board will consider the best utilization of the proceeds for business development including distribution to the shareholders in an appropriate manner.

The Ankleshwar manufacturing facility is engaged in the manufacture of Active Pharmaceutical Ingredients (API) and finished pharmaceutical products for distribution / sales across the world. In the financial year ended 31st December 2018, this facility contributed Rs. 8,735 million in the revenue (34% of total revenue of the Company including Rs. 6,226 million of domestic sales that will not be impacted), and Rs. 2,945 million to the net worth (13% of total net worth of the Company). Apart from manufacturing products which are exported to Zentiva, it also makes products which are not part of the divestment. The products for domestic market which are being manufactured at the Ankleshwar manufacturing facility will be moved to another manufacturing facility of the Company and will continue to be in the product portfolio of the Company, while most Zentiva export products that were manufactured at the Goa facility will be transferred to the Ankleshwar site. The Company has made necessary arrangements to handle this transition in a secure manner to ensure that there is no business disruption in the supplies of products which have not been divested. Post this transition, the estimated average annual revenue loss to the Company over a period of the next 4 years (balance of five-year supply agreement mentioned above) is about Rs.4,700 million. The Company plans to mitigate the loss of profit in due course through renewed focus on its core activities and brands.

Shares of Sanofi India Ltd was last trading in BSE at Rs.6271.3 as compared to the previous close of Rs. 6178.75. The total number of shares traded during the day was 209 in over 158 trades.

The stock hit an intraday high of Rs. 6297.85 and intraday low of 6150. The net turnover during the day was Rs. 1301421.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

ICRA updates on ratings of TNPL

Jump Networks Ltd inks agreement to provide wholesale Voip services

Lump Sum Term Key contract for Talcher Fertilizers Limited project awarded

Bajaj Finance Ltd board approves QIP of Rs. 8500 crore

Music Broadcast Ltd. recognized amongst 'India's Best Workplaces for Women - 2019'

ICRA assigns credit ratings to ITD Cementation India Ltd with rating watch

Advani Hotels & Resorts India Ltd Board declares First Interim Dividend of Rs. 0.80 for FY20

GHCL launches 'REKOOP 2.0' - An evolved and expanded expression of its sustainable bedding concept made with forensically tagged recycled polyester

Taneja Aerospace & Aviation Ltd's credit rating upgraded

Sunteck Realty acquires premium project near Lokhandwala, Andheri (West) for mixed-use development

Ahluwalia Contracts India Ltd secures new order of Rs. 407 crores

SMS Lifesciences India Ltd update on news item on Ranitidine HCL

JITF Infralogistics Ltd update on divestment of shares of material subsidiary company

CRISIL updates on ratings of Vivid Global Industries Ltd

Hindalco debuts on Dow Jones Sustainability Index (DJSI) 2019 in the Emerging Markets category

Som Distilleries & Breweries Ltd's subsidiary gets rating upgrade

PMLA Appellate Tribunal also releases assets of 63 moons from ED attachment

NHPC Limited approves debt raising of Rs. 2500 crore

Medicamen Biotech Ltd updates on acquisition of OPAL Pharmaceuticals Pty Ltd

CreditPilot and Tata Communications enter a financial technology partnership

Shares of Westlife Development Limited are now trading on the National Stock Exchange

ICRA revises ratings of UFO Moviez India Ltd

RTS Power Corporation Ltd changes rating agency

CRISIL assigns ratings to NGL Fine-Chem Limited

Tata Power Subsidiary to exit South African JV 'Cennergi' for USD 106 million

BEML and Wipro Infrastructure Engineering in strategic partnership

Ethos Ltd opens new store at Mumbai and closes store at Chandigarh

Glenmark receives Orphan Drug designation for GBR 1342

Asian Paints Ltd arm divests entires stake in Berger Paints Singapore Pte Ltd

CANYON terminates SPA to acquire TRF Ltd's step down subsidiary

Lemon Tree Hotels Ltd signs license agreement for 80 room hotel at Durgapur

Solix expands senior leadership team to accelerate Cloud Growth

Aavas Financiers raises INR 345 crore from IFC through NCDs

Satra Properties India Ltd has sold 49% in subsidiary

Bayer closes Monsanto integration in India

NACL Industries Ltd gets favorable verdict on insurance claim

ICRA credit Rating for Bank facilities of Banswara Syntex Ltd

American Express buys 9 acres land from DLF Group for its Office campus

SML ISUZU Ltd launches 'Executive Lx 5100 XT Bus'

CFO Tech Outlook recognizes Emagia as 'The Top 10 Fintech Solutions Providers 2019'

NBCC India Ltd signs MoU with Utkal University, Bhubaneswar

Central Bank of India changes Average Balance Charges in Savings Accounts on Monthly basis

General Motors and Tata Consultancy Services Launch New Partnership in Global Vehicle Engineering

ICRA downgrades outlook of Sandhar Technologies Ltd

USFDA issues DMF information request to SMS Pharmaceuticals Ltd

Wipro, lndustrie 4.0 Maturity Center Ink Strategic Partnership

Fintech Start-Up Tarrakki launch investment product in association with Reliance Nippon Life AMC

Asian Paints partners with Mahindra Logistics to strengthen its supply chain in Eastern India

Kaveri Seed Company Ltd board to consider buyback on Sep 24, 2019

Calcom Vision Ltd ties up with Bajaj Electricals Ltd

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019