JB Chemicals & Pharmaceuticals’ (JBCPL) board has granted its approval to the company for entering into a definitive agreement to sell its Russia-CIS prescription products business to Dr Reddy’s Laboratories (DRL). The transaction which involves the sale of products registration, intellectual properties, etc is for the consideration worth Rs 137.5 crore.
However, the transaction which is conditional upon the customary closing condition including JBCPL‘s shareholder approval, is expected to close in the current quarter. Further, Bank of America is acting as exclusive financial advisor to the company.
Meanwhile, DRL’s affiliate has entered into contract with the company’s wholly owned subsidiary situated in Russia for the purchase of its inventory for a provisional consideration of $3.90 million. In addition to this, JBCPL has signed an agreement to supply DRL finished products for the acquired business.
