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| Exchange Disseminated Time | Alembic Ltd has informed BSE regarding a Press Release dated June 29, 2010 titled "Alembic Board Approves Demerger of Pharma Business"
Press Release:
"Alembic Ltd., the pharma major, at its Board Meeting held today, announced the re-organisation containing demerger of its core pharmaceutical business in to a 100% subsidiary Company called Alembic Pharma Ltd. and reorganization of its Vadodara Undertaking. This Restructure is subject to approval from shareholders, Stock Exchanges, other authorities and the Honorable High Court of Gujarat.
In the scheme of arrangement approved by the Alembic Board, the Company proposes to demerge its Domestic Formulation, International Generic and API Business to its subsidiary company, Alembic Pharma Ltd.
Alembic Ltd. will retain its Vadodara manufacturing facility, which has fermentation facilities manufacturing Penicillin G & Erythromycin Thiocyanate and other products along with the Power infrastructure and the land assets at Vadodara.
Under the demerger scheme, the Shareholders of Alembic Ltd. will be issued 1 (one) equity share having face value of Rs. 2/- each in the Resulting Company i.e. Alembic Pharma Ltd. (APL) for every 1 equity share having face value of Rs. 2/- each held by them in the Company. This will be in addition to the equity shares already held by the shareholders in Alembic Ltd. Post demerger, Equity Share Capital of Alembic Pharma Ltd. will be Rs. 37.70 crores of which Alembic Ltd. will hold 29.18% and the balance will be held by shareholders of Alembic Ltd.
After the demerger becomes effective, Alembic Ltd. will continue to be listed and application will be made to BSE and NSE to list Alembic Pharma Ltd.
The demerger will allow the two companies to focus on their respective core businesses. Alembic Pharma Ltd. will become a pure pharma player with focus on Domestic Formulation Business and International Business largely driven by the Regulated Markets and Research & Development activities.
Alembic Ltd. will continue to operate Vadodara Undertaking (including power generating and other utilities) whose products are largely commoditized and face competition from Chinese Companies. In future, Alembic Ltd. will also endeavour to develop its real estate into commercial and residential properties subject to necessary approvals.
This re-organisation exercise will help unlock shareholders value and also help insulate core Pharma operations from severe volatility and uncertainty of Pen G business of Vadodara manufacturing facility." |
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