Panacea Biotec-led subsidiary to sell domestic biz assets for Rs1,908cr; Stock jumps 5%

2 Feb 2022 , 11:40 AM

Panacea Biotech Ltd has informed that the Board of directors in its meeting held on February 01, 2022 had taken on record the resolution passed by the Company’s wholly-owned subsidiary, Panacea Biotec Pharma Limited (being a material subsidiary of the Company) for sale, transfer or disposal of its domestic business assets constituting its pharmaceutical formulations brands in India and Nepal including related trademarks, copyrights and such other intellectual property as may be agreed, inventories, etc. to Mankind Pharma Limited and/or subsidiaries of Buyer at transaction value of Rs1,908cr plus GST.

Further, the consummation of the Transaction, as contemplated under the Binding Term sheet, is subject to the receipt of requisite approvals including the approval of the Debenture Trustees with respect to the Non-Convertible Debentures issued by the Seller, satisfactory completion of due diligence by the Buyer and finalisation of definitive agreements relating to the Transaction to the mutual satisfaction of the parties.

In the last financial year, the Domestic Business Assets generated turnover of Rs219.85cr, which is more than 63.75% of the revenue of PBPL.

The book value of Domestic Business Assets was negligible and the percentage of net worth was not measurable as the net worth of PBPL was negative. 35.19% of the revenue of the Company (on a consolidated basis) and the book value of Domestic Business Assets was negligible and the percentage of net worth was not measurable as the net worth of the Company (on a consolidated basis) was negative.

The Transaction is expected to be completed in the current financial year, said Company.

At around 11:39 AM, Panacea Biotec was trading at Rs263.80 apiece up by Rs12.55 or 5% on Sensex.