German drug major Evotec AG has signed a share purchase agreement to acquire the remaining 30 per cent of equity in its joint venture with the public-listed DIL Ltd (formerly Duphar-Interfran Ltd) for €1.7 million (Rs 11.4 crore), the company has disclosed.
Under the deal, the acquisition of DIL’s 30 per cent outstanding equity in the JV will give Evotec the full ownership of its Indian subsidiary. The transaction is anticipated to close on October 4.
In August 2009, Evotec AG acquired 70 per cent of the equity of Research Support International Private Limited (RSIPL) from DIL for €2.8 million in cash and the company was subsequently renamed Evotec (India) Pvt Ltd. Evotec AG operates its research business through this 100% subsidiary. Currently, Evotec India employs 140 scientists and focuses primarily on medicinal chemistry. It also plans to grow and expand its existing capacity.
Shares of DIL Ltd were trading at Rs 440.00 a unit on the BSE at 3:08 pm, up 1.38 per cent from the previous close.
“With the purchase of the remaining 30 per cent of our successful Indian joint venture, Evotec is now able to operate and accelerate this business with full control. This transaction will allow financial optimisation and a significant reduction in administration,” Colin Bond, chief financial officer of Evotec commented on the acquisition.
Evotec AG is a drug discovery alliance and development partnership company focused on progressing product approaches with leading pharmaceutical and biotechnology companies. The company’s headquarters are located in Hamburg, Germany.