Sanofi Aventis is investing Rs 755 crore to buy out the remaining minority shareholders of Shantha Biotechnics Ltd and fund its further expansion plans, spokesperson of the French drugmaker told VCCircle.
This follows the nod from the Foreign Investment Promotion Board (FIPB), the government authority clearing foreign investment in India, to bring in fresh FDI in the country.
Sanofi held 97 per cent in Shantha Biotechnics as of December 31, 2012 with the remaining stake held by employees and other shareholders of the company.
Through the fresh investment, Sanofi will complete its acquisition four years after picking a majority stake in the Indian company, spokesperson of the company told VCCircle.
“Sanofi will be increasing its stake to 100 per cent based on the sale of shares by other shareholders and the (FIPB) approval is an enabling one. Though major part of this capital is for capex expansion plans and operational requirements of the company,” spokesperson of the company said.
In 2009, Sanofi’s vaccine division Sanofi Pasteur bought 80 per cent stake in the company for around Rs 3,000 crore, valuing the company to over Rs 3,770 crore. Sanofi Pasteur acquired ShanH, which held majority stake in Shantha Biotechnics.
The French-drugmaker has since then gradually increased its stake in the company and is now eyeing aggressive for Shantha.
“Shantha is expanding its manufacturing capacity and is implementing Special Economic Zone near Hyderabad,” the spokesperson of the company said.
In 2011, the company built Rs 500 crore vaccine manufacturing facility in Hyderabad, one of the largest in the country. Shantha manufactures vaccines like Hepatitis B, Diphtheria and Tetanus.