Pharmaceutical major Cipla's arm Cipla EU Ltd has signed an agreement with CitiHealth Imports to acquire remaining 40 per cent stake in Cipla Pharma Lanka.
The transaction is expected to be completed by December 10. Cipla EU already has a 60 per cent stake in Cipla Pharma Lanka Pvt Ltd. Post-acquisition, Cipla Pharma Lanka will become a wholly-owned subsidiary, Cipla said in a statement.
The acquisition of 40 per cent stake is for a cash consideration of four lakh Sri Lankan rupees (about Rs 1.5 lakh) to be paid on closing of the transaction, it added.
Cipla Pharma Lanka is a private limited liability company incorporated in Sri Lanka on August 8, 2014 having a market share of 6.5 per cent in the Sri Lankan market.
The company was formed as a joint venture between Cipla (EU) and CitiHealth Imports Pvt Ltd to conduct marketing and distribution of pharmaceutical products, Cipla said.