‘The Boards of Directors of both the companies have approved a scheme of amalgamation between the two companies,’ Strides Arcolab and Shasun Pharmaceuticals said in a joint statement.
Shasun will amalgamate with Strides in an all-stock transaction. Shashun shareholders will receive 5 equity shares of Strides for every 16 shares held by them in Shasun, the statement added.
Based on the exchange ratio, Shasun shareholders will own 26 per cent of the combined entity. The current promoters of Shasun will, post the approval of the merger, be categorised as promoters of the combined entity, along with the existing promoters of Strides. ‘The combination creates a vertically integrated pharma company of scale with strong presence in front-ended regulated markets finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients and contract research and manufacturing services,’ it said.
Commenting on the development, Strides Founder and Group CEO Arun Kumar said: ‘Today's proposed combination with Shasun accelerates our strategy and growth prospects by creating a larger scale, fully integrated, leading Indian pharma company with multiple growth drivers and synergies that will allow for enhanced profitability and more efficient use of our combined infrastructure and enhanced value creation opportunities for the combined shareholder group’.
Shasun CEO and Managing Director Abhaya Kumar said: ‘We are confident that the vertically integrated new combination will deliver further additional value in the near term for all stakeholders above and beyond the strong gains we have achieved to date on our own’.
In April, Sun Pharma had announced a $4 billion deal to acquire Gurgaon-based Ranbaxy Laboratories.
As part of the merger deal between Strides Arcolab and Shasun, promoters of Strides and the promoters of Shasun will have the right to nominate non independent directors in proportion to their inter-se shareholding in the combined entity.
Shasun will amalgamate with Strides in an all-stock transaction. Shashun shareholders will receive 5 equity shares of Strides for every 16 shares held by them in Shasun, the statement added.
Based on the exchange ratio, Shasun shareholders will own 26 per cent of the combined entity. The current promoters of Shasun will, post the approval of the merger, be categorised as promoters of the combined entity, along with the existing promoters of Strides. ‘The combination creates a vertically integrated pharma company of scale with strong presence in front-ended regulated markets finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients and contract research and manufacturing services,’ it said.
Commenting on the development, Strides Founder and Group CEO Arun Kumar said: ‘Today's proposed combination with Shasun accelerates our strategy and growth prospects by creating a larger scale, fully integrated, leading Indian pharma company with multiple growth drivers and synergies that will allow for enhanced profitability and more efficient use of our combined infrastructure and enhanced value creation opportunities for the combined shareholder group’.
Shasun CEO and Managing Director Abhaya Kumar said: ‘We are confident that the vertically integrated new combination will deliver further additional value in the near term for all stakeholders above and beyond the strong gains we have achieved to date on our own’.
In April, Sun Pharma had announced a $4 billion deal to acquire Gurgaon-based Ranbaxy Laboratories.
As part of the merger deal between Strides Arcolab and Shasun, promoters of Strides and the promoters of Shasun will have the right to nominate non independent directors in proportion to their inter-se shareholding in the combined entity.