Cipla EU to acquire additional 19.16 percent stake in Cipla Maroc

New Delhi: Cipla (EU) Limited, wholly owned subsidiary of the Company in UK, has agreed to acquire an additional 19.16% stake in Cipla Maroc SA, joint venture and subsidiary of Cipla EU in Morocco.

The said acquisition is for a total consideration of MAD (Moroccan Dirham) 102.90 million (Rs79.51 crore approx.).

Cipla Maroc SA ("JV Co.") was incorporated in 2015, in Morocco, as a joint venture between Cipla EU Limited (60%), The Pharmaceutical Institute ("PHI") (24.20%) and Societe Marocaine De Cooperation Pharmaceutique ("Cooper Pharma") (15.80%) for the purpose of manufacturing, marketing and distribution of pharmaceutical products in Morocco.

Pursuant to the change in control of PHI and as per the terms of the existing Joint Venture Agreement, PHI is disposing off its shareholding in the JV Co. Accordingly, the entire stake held by PHI in the JV Co. will be acquired by Cipla EU and Cooper Pharma in proportion to their existing shareholding ("Proposed Transaction").

"The JV Co. has a highly strategic product portfolio and is one of the rapidly growing businesses in the emerging market region for Cipla. Further investment in the JV Co. will provide an exit to PHI and will help Cipla consolidate its holding in the JV Co. and deepen its presence in a strategically important Moroccan market," Cipla stated.

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