Cipla ups stake in Ugandan firm, acquires 14.5% for $15 mn

MHL was earlier holding 36.5% stake in QCIL

Pharma firm Cipla Ltd today said it has gained majority stake in Uganda-based Quality Chemical Industries Ltd with the acquisition of additional 14.5% stake for $15 million.

Meditab Holdings Ltd (MHL), a wholly owned step down subsidiary of the company, has acquired an additional 14.5% stake in QCIL, Cipla Ltd said in a filing to the BSE.

"MHL was earlier holding 36.55% stake in QCIL. Consequent to the acquisition of aforesaid additional stake, MHL now holds 51.05% stake in QCIL," it added.

QCIL's principal activity is manufacturing and selling of pharmaceutical drugs with emphasis on anti-retroviral (ARVs) and anti-malarial drugs. QCIL has a WHO approved manufacturing facility in Uganda, the filing added.

Cipla is among the big generic drug makers in the world and is one of the largest exporters of pharma products from India, shipping API and formulation products to over 170 countries such as US and Canada as well as those in Europe, Africa, Australasia, Latin America and the Middle East.

Shares of Cipla ltd were trading at Rs 389.65 per scrip in the afternoon trade, down 0.81% from the previous close on the BSE.