Lupin enters into agreement to divest its stake in Japanese unit

Nanomi, subsidiary of Lupin enters into definitive agreement to divest its entire stake in Kyowa.

Pharma major Lupin (including its subsidiaries, together referred to as Lupin) announced that it has entered into a definitive agreement for the sale of its entire stake in its Japanese subsidiary Kyowa Pharmaceutical Industry Co., (Kyowa) to Unison Capital Partners IV, LPS and Unison Capital Partners IV (F). L.P. (collectively referred to as Unison), a leading private equity fund in Japan. The announcement was made after market hours yesterday, 11 November 2019.

The Board of Directors of Lupin approved this transaction. The transaction will be subject to customary closing conditions including approval by Lupin's shareholders.

Shares of Lupin rose 2.44% to settle at Rs 735.95 yesterday, 11 November 2019.

Under the terms of the agreement, Lupin's subsidiary Nanomi B.V. will divest its entire stake (99.82%) in Kyowa to Unison's entity Plutus for an enterprise value of JPY 57,361 million, subject to closing adjustments. The divested business recorded revenues of JPY 14,241 million in H1, FY 2020 (JPY 28,335 million in FY 2019). The transaction is expected to be EPS accretive and will significantly strengthen the consolidated balance sheet of the company, Lupin said.

Lupin is an innovation led transnational pharmaceutical company developing and delivering a wide range of branded & generic formulations, biotechnology products and APIs globally. The company is a significant player in the Cardiovascular, Diabetology, Asthma, Pediatric, CNS, GI, Anti-Infective and NSAID space and holds global leadership position in the Anti-TB segment.

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