Cipla to sell stake in Uganda arm for $25-30 million
Cipla Ltd, and its wholly owned subsidiaries, Cipla (EU) Limited, and Meditab Holdings Limited, have signed a Share Purchase Agreement with Africa Capitalworks SSA 3 for the sale of a 51.18% stake in Cipla Quality Chemical Industries Limited (CQCIL) in Uganda for $25-30 million, according to an exchange filing.
The proposed sale is expected to be completed by 31st May 2023, subject to obtaining regulatory approvals and completion of conditions precedent as mutually agreed between the parties.
“The consideration to be received by Cipla (EU) Limited and Meditab Holdings Limited under the terms of the Share Purchase Agreement shall be in the range of $25-30 million, subject to annualised audited EBITDA of CQCIL for FY23 and other adjustments as agreed between the parties and stated in the Share Purchase Agreement”, the press release said.
Africa Capitalworks SSA 3 is a wholly owned subsidiary of Africa Capitalworks Holdings, an investment management company incorporated in Mauritius that provides permanent equity capital and complementary skills to mid-market companies across Sub-Saharan Africa.
Cipla Ltd had reported a net profit of ₹801 crore for the quarter ending 31 December, up 9.9% year-on-year. Excluding one-time tax charge on account of DTA (deferred tax asset) reversal, the adjusted net profit at ₹876 crore grew 20.2 % y-o-y and 11.0% sequentially