Alivira Animal Health, a subsidiary of SeQuent Scientific and Lyka Exports, a subsidiary of Lyka Labs, have entered into a definitive agreement under which Alivira will acquire the Animal Health business of Lyka on a going concern basis.
Shares of Sequent Scientific surged 7.5 percent intraday Friday on possible acquisition of Lyka Labs' Animal Health business.
Alivira Animal Health, a subsidiary of SeQuent Scientific and Lyka Exports, a subsidiary of Lyka Labs, has entered into a definitive agreement under which Alivira will acquire the Animal Health business of Lyka on a going concern basis.
The companies expect the transaction to close in next six weeks subject to customary closing conditions including shareholders' approval of Lyka.
The proposed acquisition of Lyka Animal Health Business includes all APRs, sales/marketing/distribution network with related employees, contract, assets and liabilities.
Manish Gupta, Managing Director, Sequent, "The business being acquired will strengthen our portfolio in cattle and diary segment and will complement our existing India formulation business."
In FY15, Lyka's animal health business registered a topline closed to Rs 23.5 crore with EBITDA margin in the range of 12 percent. The business is growing by over 30 percent during the ongoing financial year (FY16).
Lyka Labs has convened an extra ordinary general meeting of members of the company on September 29, 2015 to seek their approval to the proposed sale of animal healthcare division by Lyka Exports.
At 09:18 hrs Sequent Scientific was quoting at Rs 865, up Rs 40, or 4.85 percent. It has touched a 52-week high of Rs 887 on the BSE.
Posted by Rakesh Patil
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First Published on Aug 28, 2015 09:26 am