The stake sale in Cipla Quality Chemical Industries Ltd can fetch $25-30 million
Kampala, Uganda | AGENCIES | Cipla Ltd.’s wholly owned subsidiaries have entered into an agreement with investment management company Africa Capitalworks SSA 3 to sell 51.18% stake in a Ugandan subsidiary.
The two subsidiaries, Cipla (EU) Ltd and Meditab Holdings Ltd are expected to receive a consideration of $25–30 million, for a stake sale in Cipla Quality Chemical Industries Ltd according to an exchange filing.
It is subject to annualised audited Ebitda of CQCIL for the current fiscal and other adjustments according to the share purchase agreement.
Subsequent to the sale, the Ugandan entity will cease to be a subsidiary of the company. As on March 31, 2022, the Ugandan entity contributed 1.6% or $44.08 million of Cipla’s consolidated net worth,
It had earned total revenue of $75.21 million, making up for 2.6% of Cipla’s consolidated revenue for fiscal 2022.
The proposed sale is expected to be completed by May 31, 2023, subject to regulatory approval and completion of agreed upon conditions. Africa Capitalworks SSA 3 is engaged in providing permanent equity capital and complementary skills to mid‐market companies across sub-Saharan Africa.
Cipla, one of the largest pharmaceutical manufacturers in the Sub-Saharan Africa (SSA), manufactures antiretrovirals, artemisinin-based combination therapies (ACTs) and Hepatitis medicines to treat HIV/AIDS, malaria and Hepatitis.
The company has secured a number of product registrations in West Africa (WAHO), Southern Africa (ZAZIBONA) as well as increased the regulatory footprint from 16 to 31 countries across Africa.
The drug manufacturer also exports drugs to countries such as Nigeria, Sierra Leone, Niger, Botswana and Malawi as well as delivered on its long-standing commitment to enter the Ugandan retail pharmaceutical market by acquiring the importation and distribution business of the Cipla range of products manufactured in India.