Nirma Acquires 75% Stake In Glenmark Life For Rs 5,651 Cr

Glenmark Pharmaceuticals on Thursday said that it has entered into a definitive agreement with Nirma to divest 75 per cent stake in its subsidiary, Glenmark Life Sciences (GLS), at a price of Rs 615 per share for an aggregate consideration of Rs 5,651.5 crores, subject to closing adjustments. Glenmark Pharma still owns 7.84 per cent of GLS after the divestment. 

The company said that the transaction is subject to customary closing conditions precedent, including receipt of regulatory and shareholder approvals while adding that pursuant to the transaction, Nirma will make a mandatory open offer to all public shareholders of GLS. 

Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals Limited said, "We are pleased to announce this strategic transaction with Nirma Limited, which marks a significant milestone in shaping an independent growth trajectory for GLS. This deal aligns with our strategic intent of moving up the value chain to become an innovative/brand-led organisation, with a continuous focus on our core therapeutic areas of dermatology, respiratory and oncology.” 

Kotak Investment Banking acted as the exclusive financial advisor to Glenmark Pharma and GLS on this transaction. S&R Associates acted as legal advisor to Glenmark Pharma and Trilegal acted as legal advisor to GLS.

Speaking on the announcement Dr Yasir Rawjee, Managing Director and CEO, Glenmark Life Sciences Limited said, “Today’s announcement marks the next step in the journey of the company, one that will accelerate growth and help create more value for our stakeholders in the long term. We will continue to operate as an independent API company under the new ownership of Nirma Limited.”