Glenmark Pharma to divest 75% stake in GLS for $680 million

Indian drugmaker Glenmark Pharmaceuticals (BSE: 532296) has entered into a definitive agreement with Nirma Limited to divest a 75% stake in its subsidiary, Glenmark Life Sciences Limited (GLS), which focuses on producing active pharmaceutical ingredients (APIs).

The shares will be priced of 615 rupees, for an aggregate consideration of 56,515 million rupees ($680 million), subject to closing adjustments. Glenmark’s stock traded down 6.3% to 777.85 rupees following the announcement.

Glenmark Pharma will own 7.84% in GLS after the divestment. The transaction is subject to customary closing conditions precedent, including receipt of regulatory and shareholder approvals. Pursuant to the transaction, Nirma Limited will make a mandatory open offer to all public shareholders of GLS.