Mumbai-based small drug manufacturer Lyka Labs Ltd said it is selling its animal healthcare division to Alivira Animal Health Ltd, for an undisclosed amount.
The company's animal healthcare unit includes products like feed supplement, oral calcium/tonis, specialties, antibiotics and anthelmintics. It is housed under Lyka Exports Ltd.
Alivira Animal Health, formed as a joint venture between integrated pharma player SeQuent Scientific and Chennai-based Shasun Pharmaceuticals Ltd, develops, manufactures and sells veterinary products, including active pharmaceutical ingredients (API) and formulations in the global market. Last year, private equity firm Ascent Capital had picked up minority stake in Alivira.
Later Shasun exited the venture as part of a deal where it is being acquired by Strides Arcolab.
Last month, Ascent Capital said it will swap its stake in Alivira Animal Health with its public-listed parent, SeQuent Scientific Ltd, a move which would create an easy window to exit from the venture in the future.
SeQuent Scientific has received its board's approval to buy stake held by minority shareholders in Mumbai-based Alivira through an all-stock deal worth Rs 239.8 crore ($37.8 million).
It will buy 9,997,941 equity shares of Alivira owned by Ascent Capital and an enterprise jointly owned by the promoters of Shasun Pharmaceuticals and SeQuent Scientific. It will then issue 3,585,413 shares of Rs 669.10 each to the minority shareholders through a preferential allotment.
Post this, Alivira will become a wholly-owned subsidiary of SeQuent Scientific.
Incorporated in 1976, Lyka Labs manufactures and markets pharmaceutical products. Its products portfolio includes injections, tablets, ointments and syrups. It also manufactures veterinary products including injections, powders, creams and suspensions and offers surgical disposables, such as syringes, surgical blades, cotton crepe bandage and first aid kits.
The firm recently signed a deal to sell its formulation facility at Tarapur in Maharashtra for Rs 38.61 crore. It has another manufacturing facility in Ankleshwar as well as an R&D facility at Chakala, Mumbai.
Shares of Lyka Labs were trading at Rs 80.25 each, up 4.97 per cent on BSE in a strong Mumbai market at 12.58 PM on Friday.