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The pharmaceutical giant has entered into an agreement with Nirma Limited to sell a substantial 75% stake in Glenmark Life Sciences, which totals 91.89 crore shares priced at Rs 615 per share. The decision to sell this stake, equivalent to 91,895,379 shares and valued at Rs 5,651.5 crore, was approved during a board meeting held on Thursday, September 21, 2023.
As part of the sale agreement, both Glenmark Life Sciences and Nirma have agreed to certain non-compete and non-solicit arrangements for a predetermined period. Despite this significant divestment, Glenmark Pharma will retain a minor stake of 7.84% in Glenmark Life Sciences.
Glenn Saldanha, Chairman and Managing Director of the company, views the transaction with Nirma as a strategic move that aligns with Glenmark’s intent to ascend up the value chain. This deal is perceived as a step towards transforming Glenmark into an innovative and brand-led organization focusing on core therapeutic areas such as dermatology, respiratory, and oncology.
The divestment also provides an opportunity for the company to enhance shareholder value by reducing debt and improving its overall return profile. Further updates on this story will be provided as they become available.
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