Solara Active Pharma board OKs amalgamation of Aurore, Empyrean and Hydra with co

The board of directors of Solara Active Pharma Sciences on 9 April 2021 approved the amalgamation of Aurore Life Sciences, Empyrean Lifesciences and Hydra Active Pharma Sciences with the company.

The combination creates a pure play API company of scale with strong presence in regulated markets, emerging markets, a broad product portfolio, robust operations infrastructure, excellent R&D capabilities and clear synergies to further accelerate growth for the combined entity.

The merger is EPS accretive to Solara and will enhance other important financial ratios for Solara. The merger is in line with Solara's strategy of accelerating growth via appropriate inorganic actions. The combined entity will have the scale of market presence and product portfolio combined with robust manufacturing and R&D infrastructure to grow into a leading global pure play API and CRAMS company.

Shareholders of Aurore Life Sciences and Hydra Active Pharma Sciences shall be issued 1,32,94,800 equity shares of Solara Active Pharma Sciences. Pursuant to which, the shareholders of the transferor companies would have 27% stake in Solara Active Pharma Sciences.

With this merger, Aurore Life Science, Empyrean Lifesciences and Hydra Active Pharma Sciences shall be merged into Solara Active Pharma Sciences and post-merger, Solara will hold 67% stake in Aurore Pharmaceuticals. Post-Merger, promoter group holding shall be 44.18% and public holding shall be 55.82%.

The appointed date for the merger would be 1 April 2021 and the merger process is expected to be completed in Q4 FY 2021-22.

Aurore Life Science is engaged in the business of developing wide range of generic pharmaceutical products. It has one R&D center and 2 API manufacturing facilities. Aurore Life Science holds 100% of share capital of Empyrean Life Sciences and also hold 67% stake in Aurore Pharmaceuticals which also developsand manufactures vide range of generic pharmaceutical products.

Shares of Solara Active Pharma rose 0.29% to Rs 1370.85 on Friday.

Solara Active Pharma Sciences offers a basket of diversified, high-value commercial APIs and contract manufacturing services in over 75 countries. On a consolidated basis, the company posted a 59.1% jump in net profit to Rs 65.8 crore on a 24.2% rise in net sales to Rs 426.69 crore in Q3 FY21 over Q3 FY20.

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