Stocks of Strides Arcolab surged nearly 9 per cent today after the company said it will acquire South Africa's Aspen Pharmacare's portfolio of branded and generics products in Australia for about Rs 1,910 crore.
The stock ended with a sharp gain of 8.56 per cent at Rs 1,187.90 on the BSE. During the day, it rallied 9.3 per cent to Rs 1,196.
On the NSE, it settled 8.56 per cent higher at Rs 1,188.15.
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The company's market value rose by Rs 558.74 crore to Rs 7,081.74 crore.
The deal will facilitate re-entry of Strides in the Australian market.
In a BSE filing Strides Arcolab said: "Strides Pharma Global Pte Ltd and Strides (Australia) Pharma Pty Ltd, Australia, both wholly-owned subsidiaries of Strides Arcolab have signed definitive agreement with certain wholly subsidiaries of Aspen Pharmacare to acquire a generic pharmaceutical business in Australia with certain branded pharmaceutical assets."
The transaction will be financed by a combination of internal accruals and debt financing. The transaction is expected to close by end of second quarter of 2015-16.
