Dec 20: As part of its expansion plans, Strides Pharma Asia Pte Ltd, Singapore, a wholly-owned subsidiary of Strides Shasun Ltd, on Monday said that it has entered into definitive agreements with Trinity Pharma Proprietary Ltd, South Africa for acquisition of controlling stake in Trinity.
Under the terms of the agreement, Strides Pharma Asia Pte Ltd, Singapore will acquire 55% stake in Trinity for a cash consideration of South African Rand 55 million (approximately Rs 27.5 crore).
“The current management will stay as minority partner and will continue to run the business under the supervision of Strides,” the company said.
The transaction is subject to customary closing conditions including approval from the South African regulatory authority, Transaction Regulation Panel and expected to close on or before January 5, 2018.
Shashank Sinha, Managing Director of Strides Shasun Ltd, said, “the acquisition provides further impetus to our ‘In Africa For Africa’ strategy as it fast tracks Strides’ presence in the lucrative and high entry barrier market of South Africa. With this acquisition, we are now present in East, West and South Africa, covering all the key markets in Sub Saharan Africa.”
Shares of the company surged more than 4% to touch a new one week-high of Rs 825 on BSE after the news came in. At 2.18 pm, the Rs 10 face value shares were trading at Rs 818.40, up 2.91% from the previous closing of Rs 795.25.