Last Updated : Oct 26, 2020 10:34 AM IST | Source: Moneycontrol.com

Aurobindo Pharma share price rises 4% as subsidiary sells business assets

Jefferies served as the sole financial adviser and Sullivan & Cromwell LLP acted as legal counsel to Aurobindo.

 
 
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Aurobindo Pharma share price rose 4 percent intraday on October 26 after its American subsidiary decided to sell its business assets.

Natrol LLC, USA, a wholly owned step-down subsidiary of Aurobindo Pharma, has entered into a definite agreement with New Mountain Capital LLC, NY and its affiliate Jarrow Formulas Inc to dispose of its business assets as a going concern with related assets, liabilities, products, brands and employees, the company said.

The all-cash transaction is valued at $550 million (Rs 4,048 crore at the current exchange rate). Subject to the customary closing conditions and regulatory approvals, the transaction is expected to close by January 2021.

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"Aurobindo is committed to evaluating and concluding strategic options towards focused portfolio enhancement with the ultimate objective of enhancing stakeholder values. We are pleased to sell the Natrol business to an outstanding private equity player, who could focus additional resources to grow Natrol, its products and brands further," said N. Govindarajan, Managing Director, Aurobindo Pharma.

"Proceeds from Natrol’s divestiture will be used to reduce debt and other new strategic initiatives," he added.

Jefferies served as the sole financial adviser and Sullivan & Cromwell LLP acted as legal counsel to Aurobindo.

At 1011 hours, Aurobindo Pharma was quoting at Rs 809, up Rs 26.20, or 3.35 percent on the BSE.
First Published on Oct 26, 2020 10:34 am
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