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The Competition Commission of India (CCI) on Thursday (July 27) granted approval to the proposed combination involving the acquisition of shareholding up to 59.38 percent of Unichem Laboratories Ltd by Ipca Laboratories Ltd.

Ipca Laboratories, the acquirer in this transaction, is a pharmaceutical company engaged in the manufacturing of formulations and active pharmaceutical ingredients across various therapeutic segments.

On the other hand, Unichem Laboratories, the target company, is actively involved in the sale of formulations, active pharmaceutical ingredients, intermediates, and contract-manufactured finished formulation dosages on a global scale.

The proposed combination entails the acquisition of approximately 33.38 percent of the issued and paid-up equity voting share capital (on a fully diluted basis) of Unichem Laboratories by Ipca Laboratories, pursuant to a share purchase agreement.

Since Ipca Laboratories is acquiring more than 25 percent shareholding in target, which is a listed company, it is required to make an open offer for the purchase of equity shares up to 26 percent of Unichem Laboratories' equity share capital, in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Accordingly, this will lead to Ipca Laboratories ultimately holding up to 59.38 percent shareholding in Unichem Laboratories (Proposed Combination), making it a significant shareholder in the company.

First Published:Jul 27, 2023 10:54 PM IST