Bangalore-based pharmaceutical company SeQuent Scientific Ltd has completed the sale of its specialty chemical division to South Korea-based Songwon Industrial Group for Rs 120 crore ($19.8 million), the company said in a stock market disclosure.
The firm had announced the transaction four months ago but had not disclosed the deal value then.
The sale of specialty chemicals business includes SeQuent's polymer stabiliser business and production site in Panoli, Gujarat, together with the local R&D team.
"With the completion of the sale of the specialty chemical business, SeQuent has completed its restructuring and is poised for aggressive growth in its focus areas of animal health business and niche human API business. The sale also provides us cash for growth capital and also to pare down debt," said Manish Gupta, CEO of SeQuent Scientific.
SeQuent is one of the world's largest producers of anthelmintics, a drug used in treating infections caused by parasitic worms, and a stronger player in the veterinary API business. The company has completed a series of business restructuring activities which saw divestment/closure of certain businesses.
A year ago, Shasun Pharma and SeQuent signed a letter of intent to form a joint venture firm, of which 73 per cent would be owned by SeQuent and 27 per cent to be held by Shasun, to develop, manufacture and sell veterinary products, including APIs and formulations, in the global market.
Recently, SeQuent has signed agreements with Arvee Synthesis Pvt Ltd to acquire the manufacturing assets and business of the company, and also with Shasun Pharmaceuticals Ltd to buy a minority stake through a preferential allotment of shares and convertible warrants.
Headquartered in Korea, Songwon Industrial Group, the second largest manufacturer of polymer stabilisers, comprises 17 companies including two joint ventures and one representative office, located in nine different countries and three continents.
The firm has six manufacturing facilities of which three are located in Korea, one in Germany, one in the US, one in China and in addition a manufacturing JV plant in China.
(Edited by Joby Puthuparampil Johnson)