Cipla gains on divestment of arm's stake in Chinese firm

Meditab Holdings Limited, Mauritius, a wholly owned subsidiary of Cipla, has entered into a definitive agreement to sell its entire 48.22% equity interest in Jiangsu Cdymax Pharmaceuticals Co. Ltd., China

Shares of Cipla were up nearly 2% at Rs 651 after the company said its Mauritius-based firm plans to divest its entire stake in China-based pharmaceutical company.

Meditab Holdings Limited, Mauritius, a wholly owned subsidiary of the Company, has entered into a definitive agreement to sell its entire 48.22% equity interest in Jiangsu Cdymax Pharmaceuticals Co. Ltd., China (“Jiangsu”) to an affiliate of one of the other shareholders of Jiangsu, for a total consideration of USD 18.5 million, Cipla said in a release.

The closing of the transaction is subject to receipt of applicable regulatory approvals in China, the release added.
 

The stock opened at Rs 639 and touched a high of Rs 652. At 14:15PM over 1.1 million shares were traded on both the stock exchanges.