Shreya buys into drug firm in Singapore
Business Standard, Mumbai, 03 September 2004
Agrees to acquire 24% stake in SciGen in a 3-phase deal.
The Rs 2,300-crore Shreya group is picking up a 24 per cent stake in
SciGen Ltd, a Singapore-based pharmaceuticals major.
"We are making a strategic investment. Initially, we will pick up a 5
per cent stake in SciGen, and scale it up to 24 per cent by January
2005. The investment will be in the range of Australian $8.2-$ 10.14
million," Shreya group Chairman Sujit Kumar Singh said.
Shreya will pay 7 Australian cents for every SciGen share, against the
market price of 1 cent per share.
The entire process will be completed in three phases. Initially,
Shreya will purchase 22 million SciGen shares, representing 5 per cent
of its currently issued capital.
It will then subscribe to a one-for-four, non-renounceable rights
issue. Finally, SciGen will place additional shares with Shreya to
help the latter take its holdings to 24 per cent of the expanded
capital base.
Also, Singh and Shreya's Director Ajit Bhaskar will join the SciGen
board.
"SciGen has a strong presence in the Asia-Pacific region, besides
being a significant player in the bio-pharmaceuticals space, with
marketing and technological expertise and product registrations," a
company executive said.
Shreya and SciGen already have a 'commercialisation agreement' in
place for bringing SciGen's products to India. Shreya is building a
new $20 million facility at Pune, where SciGen's products will be
manufactured.
Singh's Shreya group comprises Shreya Corporation Moscow, Shreya
LifeSciences India Ltd and Shreya Biotech Pvt Ltd. The group started
its operations in India by acquiring the pharmaceuticals business of
Rallis India.
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