Nectar to sell API, formulations and menthol biz to Ceph for ₹1,290 cr

By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation, said Nectar's Promoter and Chairman Sanjiv Goyal

Nectar Lifesciences Ltd on Tuesday said it will sell its active pharmaceutical ingredients and formulation along with menthol business assets to Ceph Lifesciences Pvt Ltd, for ₹1,290 crore.

The company has signed a definitive Business Transfer Agreement (BTA) for the sale of its core business division, comprising the manufacture, distribution, and marketing of Active Pharmaceutical Ingredients (APIs) and formulations to Ceph Lifesciences for ₹1,270 crore on a slump sale basis, Nectar said in a regulatory filing.

Additionally, the company has entered into an Asset Purchase Agreement (APA) for the sale of its menthol business assets to Ceph Lifesciences for ₹20 crore, marking a comprehensive restructuring move aligned with its future strategy, it added.

 

"By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation," Nectar Lifesciences Promoter and Chairman Sanjiv Goyal said.

Nectar Lifesciences said the transaction forms a part of its long-term strategy to streamline operations, strengthen its financial position, and unlock value for shareholders.

"The proceeds from the sale will be used to repay existing debt, invest in new and emerging business areas and reward shareholders, subject to applicable approvals," the company said.

Besides, the proceeds will also be used to fund future corporate and growth initiatives, it added.

The transaction is expected to be completed on or before September 20, subject to customary approvals, the filing said, adding there would be no change in the company's existing shareholding.