Glenmark to divest majority stake in Glenmark Life Sciences to Nirma

Glenmark Pharmaceuticals has entered into a definitive agreement with Nirma to divest 75 per cent stake in its subsidiary, Glenmark Life Sciences at a price of Rs 615/- per share for an aggregate consideration of Rs 56,515 million, subject to closing adjustments. Glenmark Pharma own 7.84 per cent in Glenmark Life Sciences after the divestment. The transaction is subject to customary closing conditions precedent, including receipt of regulatory and shareholder approvals.

Pursuant to the transaction, Nirma will make a mandatory open offer to all public shareholders of Glenmark Life Sciences.

Glenn Saldanha, Chairman and MD, Glenmark Pharmaceuticals said, “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. It also presents an opportunity for us to strengthen shareholder value through deleveraging and enhancing our overall return profile.”

Dr Yasir Rawjee, MD and CEO, Glenmark Life Sciences said, “We will continue to operate as an independent API company under the new ownership of Nirma. I see this as an opportunity to further strengthen our position in the API industry and continue the growth trajectory.”

Kotak Investment Banking acted as the exclusive financial advisor to Glenmark Pharma and Glenmark Life Sciences on this transaction. S&R Associates acted as legal advisor to Glenmark Pharma and Trilegal acted as legal advisor to Glenmark Life Sciences.