CCI approves IPCA Labs' acquisition of a 59.3% stake in Unichem

The purchase of up to a 59.3% stake in Unichem Laboratories Ltd. by Ipca Laboratories Ltd. has been authorised by the Indian Competition Commission. For a cash payment of Rs 1,034 crore, which equates to 2.4 crore shares at a price of Rs 440 each, Ipca will purchase the holding from Unichem's promoter shareholders.

Ipca Labs had announced the agreement to acquire a stake in an April 24 exchange filing. The company will be making an open offer to acquire up to 26% of Unichem's shares at the same price, aggregating to Rs 805.4 crore, in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. As a result, the proposed acquisition transaction, which was previously awaiting CCI approval, has now been granted. According to a PIB announcement, this is dependent upon the parties abiding by the voluntary undertakings they have provided.

Source: Media Reports