New Delhi: Drug major Cipla on Tuesday said its board has approved a potential investment by FIL Capital Investments (Mauritius) II Ltd in its consumer healthcare business.
In a filing to the BSE, Cipla said that its Board of Directors have "approved a potential investment by FIL Capital Investments (Mauritius) II Ltd, or any of its affiliate in a wholly owned subsidiary of Cipla Ltd (proposed to be incorporated) to whom Cipla will be divesting its consumer healthcare business on a going-concern basis."
"The approval is subject to execution of binding agreements, and the transaction will be subject to relevant regulatory approvals," the filing said.
Earlier this month, the Cipla board approved divestment of its consumer healthcare business to a wholly-owned subsidiary which is yet to be incorporated, on a going-concern basis by way of a slump sale for a consideration of Rs 10.5 crore.
The aforesaid divestment would enable the company to participate in the attractive and growing over-the-counter (OTC) market, it had said.
The division recently launched its first product Nicotex, a gum which helps smokers quit the habit.
The amount and percentage of the turnover contributed by the OTC division of the company during the last financial year (2014-15) stood at Rs 34.88 crore or around 0.3 per cent.
The net worth of OTC division of the company as on March 31, 2015 stood at Rs 6.45 crore, contributing 0.06 per cent of the net worth of the company.
Cipla said none of the persons belonging to promoter group of the company has any interest in the transaction.
Shares of Cipla were trading at Rs 685.40 apiece in morning trade, up 0.36 per cent from previous close, on the BSE.
