Strides Arcolab acquires 17.7% more in Genepharm Australasia

Strides Arcolab has acquired over 17.7 per cent in ASX-listed Genepharm Australasia under a share acquisition agreement with a group of Cyprus-based shareholders that are associated with Genepharm's largest shareholder, Genepharm Asia Pacific Enterprises.

Strides will vend its Australian and Asian business in exchange for the issue of shares in Genepharm.Including the existing 2.1 per cent of Genepharm shares over which Strides currently has a relevant interest, the transaction takes Strides' total relevant interest in Genepharm issued shares to 19.8 per cent.

On successful completion of the Genepharm transaction, Strides may emerge with a shareholding of 55 per cent of the expanded capital base of Genepharm.The combined regional businesses are expected to have revenue of A$ 100 million on closing of the Genepharm transaction.

The purchase consideration for the acquisition of Strides' Australian and Asian operations has been reduced from A$65.0 million to A$61.0 million, with Genepharm proposing to assume A$4.1 million of existing debt within the business.The issue price of the shares paid to Strides as purchase consideration is A$0.55 per share compared to the original price of A$0.60 per share, reflecting Genepharm’s recent trading results and share price performance.

Strides Arcolab completes Diaspa buy

Strides Arcolab on Monday said it has completed the acquisition of Italy's Diaspa and fermentation assets including its ongoing business in Milan. The buy was carried out by Strides Arcolab International.

Diaspa has a fermentation capacity of 925 cubic meters and produces a range of niche pharmaceuticals.

Strides Arcolab will make additional investments into Diaspa to meet its growing demands of captive fermentation pharmaceuticals - mainly Vancomycin & Tecoplanin.

“The acquisition gives Strides immediate access to a USFDA and EU approved facility and provides the technology necessary for Strides to grow its sterile injectable business,” said Arun Kumar, vice chairman and managing director of Strides Arcolab.

Strides $100mn FCCB conversion at 145% prem

Strides Arcolab today announced that the company has successfully completed the issue and allotment of $100 million 'zero coupon convertible bonds due 2012'.

According to a release issued by Strides to the BSE today, the bonds to be listed at the Singapore Exchange, have been issued at an initial conversion price of Rs 461.55 per share with a fixed rate of exchange on conversion of Rs 40.70 = $1. The yield to maturity has been set at 7.575% and the bonds will be redeemed at 145% premium to its yesterday's closig price on BSE.

Strides buys Grandix Pharma for Rs 100 cr

Strides Arcolab Ltd on Monday said it has acquired Grandix Pharmaceuticals Ltd and its subsidiary Grandix Laboratories Ltd on a cash and debt free basis at Rs 100 crore.

Grandix, which focuses mainly on the South India, posted sales of Rs 48.50 crore and earnings before interest, depreciation, tax and amortisation of Rs 10.89 crore. The company's sales in 2007 is expected to grow at over 30%, a notice on the Bombay Stock Exchange said.

At 11:15 am, Strides Arcolab share was at Rs 338 on BSE, up Rs 8.45 or 2.56% from Friday's close. Volume traded so far was 28,389 shares. It touched a high of Rs 342.50 and low of Rs 335 in trade so far.

Strides Arcolab to raise $100 mn via bonds

Maker and exporter of finished pharma dosage forms, Strides Arcolab will raise upto $100 million (over Rs 400 crore) through an FCCB issue to part-finance potential overseas acquisition plans.

The company today announced the launch of its foreign currency convertible bonds (FCCBs), which would raise $75 million. In addition, Barclays Capital, the lead manager to the FCCB issue, has an option to increase the issue size by an additional 25 million dollars, Strides Arcolab informed the Bombay Stock Exchange (BSE).

"Given a favourable credit and interest rate environment, we have decided to issue the bonds to meet capital expenditure, finance potential overseas acquisition programmes and invest in an overseas subsidiary," the company said.

Read more in The Economic Times article/