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Sequent Scientific strengthens as its arm plan to acquire animal health business of Lyka Exports

28 Aug 2015 Evaluate

Sequent Scientific is currently trading at Rs 858.00, up by 33.00 points or 4.00% from its previous closing of Rs. 825.00 on the BSE.

The scrip opened at Rs. 840.00 and has touched a high and low of Rs. 889.00 and Rs. 840.00 respectively. So far 15760 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 850.00 on 07-Jul-2015 and a 52 week low of Rs. 364.00 on 04-Sep-2014.

Last one week high and low of the scrip stood at Rs. 829.50 and Rs. 621.50 respectively. The current market cap of the company is Rs. 3623.14 crore.

The promoters holding in the company stood at 56.33% while Institutions and Non-Institutions held 25.08% and 18.59% respectively.

Sequent Scientific’s arm Alivira Animal Health has entered into a definitive agreement with Lyka Exports, a subsidiary of Lyka Labs, under which Alivira will acquire the animal health business of Lyka Exports on a going concern basis. DSK Legal acted as the legal advisor for the transaction on behalf of Alivira. Lyka was advised by Ernst & Young, as the M&A Advisor and PDS Legal as the Legal Advisor.

The parties expect the transaction to close in next 6 weeks subject to customary closing conditions including shareholders’ approval of Lyka. The proposed acquisition of Lyka’s animal health business includes all IPRs, Sales/ Marketing/Distribution network with related employees, contracts, assets and liabilities.

In FY15, Lyka’s animal health business registered a top line of close to Rs 23.50 crore with EBITDA margins in the range of 12%. The business is growing by over 30% during the ongoing financial year (FY16).

Sequent Scientific is an integrated pharmaceutical company with a global footprint headquartered in Bangalore, India which has presence in different pharmaceutical verticals including APIs, Animal Health, Analytical Services, CRAMS and specialty chemicals. Sequent is the world's largest producer of Anthelmintics and by far the strongest player in the Veterinary API business.

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