Cipla sells 51.18% stake in CQCIL, Uganda for $25 - $30 million

15 Mar 2023 , 01:12 AM

Cipla Limited informed that the company and its wholly owned subsidiaries, Cipla (EU) Limited in the United Kingdom and Meditab Holdings Limited in Mauritius, entered into a Share Purchase Agreement with Africa Capitalworks SSA 3 for the sale of a 51.18% stake in Cipla Quality Chemical Industries Limited (CQCIL) in Uganda.

Following the sale, CQCIL will no longer be a subsidiary of the company.

Cipla (EU) Limited and Meditab Holdings Limited will receive consideration in the range of USD 25-30 million, subject to CQCIL’s annualized audited EBITDA for FY23 and other adjustments as agreed between the parties and underlined in the Share Purchase Agreement.

Africa Capitalworks SSA 3 is a wholly owned subsidiary of Africa Capitalworks Holdings (ACW), a Mauritius-based investment management firm. ACW offers enduring financial investments and supplementary expertise to middle-sized enterprises operating in Sub-Saharan Africa.

The company expects to complete the transaction by May 31, 2023.

As on March 31, 2023, CQCIL reported a revenue of USD 75.21 million, being 2.57% of the consolidated revenue of Cipla Limited.

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