Listed firms Aurobindo Pharma and Mic Electronics have sold stakes in their subsidiaries as they cashed their holdings. While Aurobindo Pharma Ltd sold stake in its China venture, Mic sold its entire stake in a step-down subsidiary.
Aurobindo has sold a 51% stake in Aurobindo (Datong) Bio Pharma to China National Pharmaceutical Group Corp (Sinopharm). After the deal, Sinopharm will infuse more funds into the company which will take its stake to 80.5%. The deal would reduce the stake held by Aurobindo in the company to 19.5%.
After the deal, Aurobindo's loan of $23 million to the subsidiary will also be repayed which will help the company improve cash flows. Aurobindo (Datong) Bio Pharma manufactures 6APA, a derivative of Penicillin-G, most of which is consumed by Aurobindo. Aurobindo said that over the years it has shifted from an API to formulations company so the deal is in the best interests of the company.
The remaining stake is held to ensure uninterrupted supply of raw materials at competitive prices, said Aurobindo.
MIC Electronics has sold its entire 68.26% stake in its step down subsidiary Infostep India Private Limited to US-based Saama Technologies Inc. for $3 million. MIC said the deal is part of its plan to focus on its core business of LED Lighting & display systems. Infostep provides IT consulting, business intelligence, data integration, data management and emerging technologies.