Strides Arcolab to delist Aussie subsidiary Ascent Pharmahealth by acquiring publicly held shares

Bangalore-based injectable manufacturer, Strides Arcolab, intends to delist its Australian subsidiary Ascent Pharmahealth Ltd through acquisition of its publicly held shares. It currently owns a 57-per cent stake in the company.

Strides said it also wanted Dennis Bastas, founder and chief executive officer of Ascent as an equity participant in the company and further let the current executive management team continue.

Confirming interest in acquiring the shares, Strides, said  in a press release it had not made a formal proposal in this regard. The release issued today stated, ''The discussions may or may not lead to an agreed transaction.''

According to the indicative proposal, Strides would offer A$0.35 per Ascent share representing an enterprise value of A$ 100 million (Rs 415.7 crore) for the company. The proposal offers a premium of 84 per cent to the 12-month weighted average share price of A$0.19 according to the company's statement.

Strides has recently taken over South African Aspen Pharamacare's manufacturing unit in Brazil for a consideration of $75 million. Strides posted annual sales of Rs1,328.3 crore in 2009.

The money for the proposed acquisition of Ascent shares would come from a combination of internal accruals and debt, Arun Kumar, CEO and vice chairman, Strides, told Business Line. The company is also getting plenty of revenue by way of licensing income, which is set to double from last year's Rs100 crore, he added.