Jubilant Life to consolidate pharma biz under S'pore unit

Jubilant Life Sciences (JLL) today said the company's board has approved a proposal to transfer its active pharmaceutical ingredient (API) and dosage form business to its Singapore-based subsidiary for a total consideration of Rs 1,145.10 crore.

The company's board also approved the transfer of shares held by it in US-based Jubilant Pharma Holding Inc, USA and Jubilant Pharnma NV, Belgium, to a wholly-owned subsidiary of Jubilant Pharma Ltd, Singapore, JLL said in a filing to BSE.

"The board has approved to transfer the API, dosage form business of JLL by way of a slump sale on a going concern basis and shares held by JLL in Jubilant Pharma Holding Inc and Jubilant Pharnma NV to a wholly-owned subsidiary of Jubilant Pharma Ltd, Singapore for a total consideration of Rs 1,145.10 crore," it added.

This transfer would be subject to approval of the shareholders etc.

The business and share transfer would be done to a new company to be incorporated in India as a wholly owned subsidiary of Jubilant Pharma Limited, Singapore – a wholly-owned subsidiary of JLL. The Singapore unit has already received approval from the Foreign Investment Promotion Board (FIPB).

"This will enable the company to consolidate its API, solid dosage form, radiopharma...liquid businesses under Jubilant Pharma Ltd, Singapore to explore, identify and implement the options and opportunities of raising money including by way of listing the pharma business for its growth and reduction of overall consolidated debt of the company," the company said.

Shares of JLL today closed at Rs 82.70 apiece on the BSE, up 4.55 per cent from their previous close.