BENGALURU (Reuters) – Indian pharmaceutical firm Ipca Laboratories Ltd said on Monday it has agreed to buy a 33.38% stake in Unichem Laboratories Ltd for up to 10.34 billion rupees ($126.26 million).
Ipca, which makes paracetamol tablets under the brand name Pacimol, is also launching an open offer to Unichem’s shareholders to buy an additional 26% stake for 8.05 billion rupees, it said in a regulatory filing.
Unichem’s core business includes manufacturing branded generic drugs, while Ipca primarily makes active pharmaceutical ingredients or key biologically active elements in a drug that help achieve the desired health effects.
As part of the deal, Unichem’s board will approve the appointment of three nominees of Ipca as additional directors, Unichem said in a separate statement.
Shares of Ipca closed 1.7% lower and Unichem’s shares settled 3% higher on Monday, ahead of the acquisition announcement.
($1 = 81.8920 Indian rupees)
(Reporting by Biplob Kumar Das in Bengaluru; Editing by Devika Syamnath)