Cipla to sell 51 percent stake in Uganda arm for USD 25-30 million

Published On 2023-03-15 10:30 GMT   |   Update On 2023-03-15 10:30 GMT
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Mumbai: Pharma major Cipla Limited and its wholly owned subsidiaries, Cipla (EU) Limited, UK and Meditab Holdings Limited, Mauritius, have entered into a Share Purchase Agreement with Africa Capitalworks SSA 3 for the sale of 51.18 percent stake in Cipla Quality Chemical Industries Limited (CQCIL), Uganda. Subsequent to the sale, CQCIL will cease to be a subsidiary of Cipla.

"Consideration to be received by Cipla (EU) Limited and Meditab Holdings Limited shall be in the range of USD 25-30 million which shall be subject to annualised audited EBITDA of CQCIL for FY23 and other adjustments as agreed between the parties and stated in the Share Purchase Agreement," the company stated in a recent BSE filing.
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The proposed sale is expected to be completed by 31st May 2023, subject to obtaining regulatory approvals and completion of conditions precedent as mutually agreed between the parties.

The buyer, Africa Capitalworks SSA 3, is a wholly owned subsidiary of Africa Capitalworks Holdings (“ACW”), an investment management company incorporated in Mauritius. ACW is engaged in providing permanent equity capital and complementary skills to mid‐market companies across Sub‐Saharan Africa. 

Cipla Limited is an Indian multinational pharmaceutical and biotechnology company, headquartered in Mumbai, India. The Company was founded by Khwaja Abdul Hamied in 1935 in Mumbai.

The company specializes in the respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments. Cipla's 47 manufacturing sites around the world produce 50+ dosage forms and 1,500+ products using cutting-edge technology platforms to cater to 86 markets. 

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