Sun Pharma announces 1:500 share swap for Pradeep Drugs
By The board of directors of Mumbai-based Sun Pharmac | 27 Feb 2001
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The board of directors of Mumbai-based Sun Pharmaceuticals Industries, has approved the merger of Chennai-based Pradeep Drugs into the company. At a meeting held recently to approve the merger, the board has also decided on a swap ratio of 1 share of Sun Pharmaceuticals for every 500 shares of Pradeep Drugs, after a careful consideration of the two reports prepared by independent valuers.
However, the merger of the two drug companies will be subject to the approvals of shareholders and other authorities. The board of Sun Pharma expects to issue 18,520 fresh shares of their company in exchange of 9,259,657 shares of Pradeep Drugs.
But Sun Pharmaceuticals is reluctant to divulge the details of the two valuation reports prepared by PriceWaterhouseCoopers, appointed by Sun Pharmaceuticals, and Dhir and Dhir Associates, appointed by Pradeep Drugs.
This is surprising as both the companies are listed on the bourses and Sun Pharmaceuticals' director Mr. Mohanchand Dadha's family and associates hold around 40 per stake in Rs. 9.2 crore equity-based Pradeep Drugs.
For the year ended March 2000, Pradeep Drugs has posted a turnover of Rs.21.47 crore and a net loss of Rs. 0.95 crore. The accumulated losses as on that date stand at Rs. 15 crore. The company has a debt of Rs.7.26 crore and net current liabilities of Rs. 5.57crore.
The only tangible asset that the BIFR case Pradeep Drugs boasts of is about its bulk drug manufacturing facility spread over 17.5 acres.
"Pradeep Drugs strengthens our bulk active game plan. The advantage through speciality bulk actives' exports to non-regulated markets is two fold with the freeing up of capacity at our existing plants for the regulated markets," states Mr. Dilip Sanghvi, managing director of Sun Pharmaceuticals.
However, the merger of the two drug companies will be subject to the approvals of shareholders and other authorities. The board of Sun Pharma expects to issue 18,520 fresh shares of their company in exchange of 9,259,657 shares of Pradeep Drugs.
But Sun Pharmaceuticals is reluctant to divulge the details of the two valuation reports prepared by PriceWaterhouseCoopers, appointed by Sun Pharmaceuticals, and Dhir and Dhir Associates, appointed by Pradeep Drugs.
This is surprising as both the companies are listed on the bourses and Sun Pharmaceuticals' director Mr. Mohanchand Dadha's family and associates hold around 40 per stake in Rs. 9.2 crore equity-based Pradeep Drugs.
For the year ended March 2000, Pradeep Drugs has posted a turnover of Rs.21.47 crore and a net loss of Rs. 0.95 crore. The accumulated losses as on that date stand at Rs. 15 crore. The company has a debt of Rs.7.26 crore and net current liabilities of Rs. 5.57crore.
The only tangible asset that the BIFR case Pradeep Drugs boasts of is about its bulk drug manufacturing facility spread over 17.5 acres.
"Pradeep Drugs strengthens our bulk active game plan. The advantage through speciality bulk actives' exports to non-regulated markets is two fold with the freeing up of capacity at our existing plants for the regulated markets," states Mr. Dilip Sanghvi, managing director of Sun Pharmaceuticals.
The Pradeep Drugs site would be used to address the domestic as well as non-regulated markets. Currently, the largest selling bulk drugs from Pradeep Drugs are clarithromycin, azithromycin and erythromycin.
High value added complex speciality bulk drugs for exports to regulated markets would be manufactured at the sites in Panoli and Ahmednagar. A dedicated facility at Ankleshwar (the erstwhile Gujarat Lyka plant) manufactures cephalexin.
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