European pharma player Mires B.V has expressed interest to acquire majority stake in Mumbai-based drug maker Dr Datsons Labs Ltd, the company announced in a stock exchange disclosure.
“Mires B.V proposed to buy majority stake in the target company and has proposed that enterprise valuation of Dr Datsons Lab be decided post due diligence,” the mid-level drug maker announced on Monday.
The parentage and more details on Mires could not be sourced immediately.
Dr Datsons Labs has been negotiating with various pharma companies and other strategic investors for a potential stake sale, the company had earlier said.
While the firm did not disclose the names of prospective buyers, media reports had earlier suggested Videocon Group is looking to buy a controlling stake in the company.
According to a report by Business Standard, Videocon Group increased its holding in the company from 9 per cent to 19 per cent in quarter ended March 31, 2014. The holding of promoters of the company has shrank to 10 per cent as of the same date compared with 24.8 per cent as of December 31, 2013. The promoters of the company include Finaventure Capital and Kannan Vishwanath. Almost all of their shares are pledged with financial institutions which makes the firm an easy takeover target.
The report also said citing its promoter and vice chairman Kannan Vishwanath that the firm is looking for capital investment of around Rs 250 crore to fund its expansion plans in Mahad and Pune.
Dr Datsons manufactures active pharmaceutical ingredients (APIs) and finished dosage forms. It also provides contract research and manufacturing services and has a strong presence in the anti-malarial API segment.
For the year ended March 31, 2013, it reported revenues of Rs 520.75 crore with net profit of Rs 0.42 crore. In the quarter ended December 31, 2013 it reported revenues of Rs 150.57 crore with net profit of Rs 1.86 crore.
The scrip of the company closed at Rs 27.25, down 6.8 per cent on BSE in a weak Mumbai market on Monday. At this price the company has a market value of Rs 86 crore.
(Edited by Joby Puthuparampil Johnson)
