Aurobindo Pharma to acquire 25% equity stake in Silicon Life Sciences

Aurobindo Pharma has received an approval to acquire 25% equity stake in Silicon Life Sciences (Silicon), a company engaged in manufacture of non-sterile penems, from the existing shareholder - ABS Mercantiles. Post this acquisition, the equity holding of the company would increase to 100%, thereby making Silicon a wholly owned subsidiary of the company. This acquisition will benefit the company in consolidating its operations. The board of director at its meeting held on September 12, 2013 has approved for the same.

The board has also decided to acquire 100% of the equity stake in Hyacinths Pharma (Hyacinths), a company incorporated to manufacture APIs, from the existing shareholders. Hyacinths is having land admeasuring 52 acres and 80 cents and is located in Srikakulam District, Andhra Pradesh which is near to the existing unit of the company at Pydibhimavaram, Srikakulam District, Andhra Pradesh.

Hyacinths’ is yet to commence its project but has the necessary statutory approvals in place. The location of the land is strategically ideal and convenient for expansion plans of the company in future. Post this acquisition, Hyacinths will become a wholly owned subsidiary of the company.

Further, in order to strengthen and provide focused growth to the injectables business, the board also approved the transfer of Injectables Unit IV as a going concern to Curepro Parenterals, a wholly owned subsidiary of the company pursuant to a scheme of arrangement. The Scheme is subject to requisite consent, approval of the shareholders, the High Court of Judicature at Hyderabad, Andhra Pradesh, Stock Exchanges, SEBI, the permission or approval of any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.