Drug firm Cadila Healthcare on Wednesday said its board has approved the transfer of its animal healthcare business on a going concern basis to its wholly-owned arm Zydus Animal Health and Investments Ltd (ZAHL) as part of its internal restructuring exercise.
The transfer of animal healthcare business is through execution of a definitive agreement, Cadila Healthcare said in a filing to BSE.
The animal healthcare business (AHB) consists of development, manufacturing, marketing and selling of animal healthcare products in India and other countries, it added.
"No cash consideration will be paid by ZAHL for transfer of AHB. ZAHL will issue and allot 227,33,50,000, 8 per cent non-convertible non-cumulative redeemable preference shares of Rs 10 each at face value, aggregating to Rs 2,273.35 crore, in exchange for transfer of AHB," Cadila Healthcare said.
ZAHL is engaged in the business of pharmaceuticals and investments, it added.
Cadila Healthcare Ltd and ZAHL are the parties to the definitive agreement, the filing said.
Cadila Healthcare shares closed at Rs 258.15 on BSE, up 0.84 per cent from the previous close.