How lpca Labs' Billion-Dollar move could change the pharma game forever? Acquires Unichem Labs for Rs 1034.06 crore!
Good news for shareholders of Unichem; here’s why!
Exciting news broke on April 24, 2023, as lpca Laboratories Limited announced that it had entered into a share purchase agreement for the acquisition of a whopping 33.38 per cent of the paid-up equity share capital of Unichem Laboratories Limited. The acquisition was made from one of the company's promoters, Dr Prakash Amrut Mody, at a price of Rs. 440 per equity share, amounting to a grand total of Rs 1034.06 crores.
However, this acquisition triggered an open offer under SEBI SAST regulations, as the acquirer, Ipca Laboratories, was acquiring more than the threshold limit. As a result, Ipca Laboratories made an open offer to the public equity shareholders of Unichem Laboratories, offering to acquire up to 26 per cent of the equity share capital at a price of Rs 440 per share, which is about a 13.4 per cent premium of the last closing price on NSE of 388.05.
The acquisition is subject to approval from CCI, but the potential benefits of this acquisition are enormous. Unichem Laboratories is an international, integrated, specialty pharmaceutical company that manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in several countries across the globe, with major markets being the United States of America and Europe.
Meanwhile, lpca Laboratories is one of the world's largest manufacturers and suppliers of over a dozen APis. These APis are produced from manufacturing facilities approved by the world's most discerning drug regulatory authorities like UK-MHRA, EDQM-Europe, and WHO-Geneva, among others. The business and product range of Ipca and that of Unichem complement each other's business and product range, making this acquisition an exciting prospect for both companies.
Today, lpca Laboratories' shares opened at Rs 841.45, with a high and low of Rs 854.55 and Rs 824, respectively. However, the stock closed trading at Rs 826.50, down by 1.68 per cent over.