Alembic Pharma to Acquire 45% Stake in Canadian Venture to Expand Pharma Business in Canada
New Delhi: Alembic Pharmaceuticals Limited has announced the execution of a Shareholders' Agreement to invest in a newly incorporated Canadian corporation, marking a strategic step towards expanding its pharmaceutical business in the Canadian market.
According to a regulatory filing submitted to the stock exchanges, Alembic will acquire a 45% equity stake in the Canadian corporation under the agreement. The partnership has been formed with Difgen Holdings LLC and Sukhad Juneja, who will jointly participate in the venture.
The newly established entity, 17989377 Canada Inc., has been created to serve as a platform for the development, commercialization, distribution, and marketing of pharmaceutical products focused on the Canadian market.
As per the shareholding structure outlined in the agreement, Alembic Pharmaceuticals and Difgen Holdings LLC will each hold 45% ownership, while the remaining 10% stake will be held by other shareholders.
The company stated that the board of directors of the Canadian corporation will comprise nominee directors representing the shareholders along with an independent director. The agreement also provides customary shareholder rights, including participation in key decision-making matters.
Alembic clarified that the parties involved in the transaction are not related to the company's promoter, promoter group, or group companies. It further stated that the investment does not fall within the ambit of a related-party transaction.
Following completion of the investment, the Canadian corporation will become an associate company of Alembic Pharmaceuticals. The company also noted that there is no potential conflict of interest arising from the agreement.
