Wockhardt share price up 4% on report Cipla leading race to buy select biz segments
Cipla is in pole position currently and is leading the race to buy a clutch of Wockhardt's business divisions.
November 29, 2019 / 03:11 PM IST
Wockhardt share price gained 4 percent intraday on November 29 after Moneycontrol reported drugmaker Cipla could be a front-runner to acquire select business segments of Wockhardt.
"Cipla is in pole position currently and is leading the race to buy a clutch of Wockhardt's business divisions, which have been put on the block," a source told Moneycontrol.
Explaining the rationale for the deal, another source added, "Cipla can achieve further scale and boost its domestic presence with this transaction. The discussions are at an advanced stage and agreements between both parties are likely to be signed within the next few weeks.”
Wockhardt, a third source said, wants to reduce its debt burden and is seeking a valuation between Rs 2,400 crore and Rs 2,700 crore. But was quick to add that the final deal value may vary based on due diligence.
At 14:47 hrs Wockhardt was quoting at Rs 260.20, up Rs 5.45, or 2.14 percent and Cipla was quoting at Rs 468.80, up Rs 0.65, or 0.14 percent on the BSE.