Key Points of Cipla Stake Sells in Uganda Unit:
- Cipla has divested its majority stake in Cipla Quality Chemical Industries Ltd (CQCIL), Uganda, to Africa Capitalworks (ACW) SSA for $25-30M.
- As per the deal, CQCIL will no longer be a subsidiary of Cipla.
- Cipla entered into a Share Purchase Agreement with ACW for the sale of its 51.18% stake in CQCIL, along with its wholly-owned subsidiaries Cipla (EU) Ltd, UK, and Meditab Holdings Ltd, Mauritius.
- The completion of the sale is expected by May 31, 2023, subject to regulatory approvals and mutually agreed-upon conditions.
- ACW is a fully-owned subsidiary of Africa Capitalworks Holdings, an investment management firm based in Mauritius.
- ACW provides long-term equity capital and supplementary expertise to mid-market firms throughout Sub-Saharan Africa.
- Cipla’s divestment from CQCIL reflects its strategic focus on enhancing core business segments while divesting non-core assets.
- The deal enables ACW to gain a majority stake in CQCIL, a leading pharmaceutical company in Uganda.
Details of Cipla Stake Sale in Uganda Unit:
Cipla Sells 51.18% Stake in CQCIL, Uganda to Africa Capitalworks for $25-30M
Mumbai-based pharmaceutical giant Cipla announced on March 14th, 2023, that it has divested its majority stake in Cipla Quality Chemical Industries Ltd (CQCIL), Uganda, to Africa Capitalworks (ACW) SSA for a sum ranging between $25-30 million. As per the terms of the deal, CQCIL will no longer be a subsidiary of Cipla.
In an exchange filing, Cipla stated that it had entered into a Share Purchase Agreement with ACW for the sale of its 51.18% stake in CQCIL, along with its wholly-owned subsidiaries Cipla (EU) Ltd, UK, and Meditab Holdings Ltd, Mauritius. The completion of the sale is expected to take place by May 31, 2023, following regulatory approvals and fulfillment of mutually agreed-upon conditions.
Africa Capitalworks SSA 3, the buyer, is a fully-owned subsidiary of Africa Capitalworks Holdings, an investment management firm based in Mauritius. ACW specializes in providing long-term equity capital and supplementary expertise to mid-market firms throughout Sub-Saharan Africa.
Cipla’s divestment from CQCIL underscores the company’s strategic focus on enhancing its core business segments while divesting non-core assets. This deal will also enable ACW to gain a majority stake in CQCIL, a leading pharmaceutical company in Uganda.
About Cipla:
Cipla, a prominent Indian pharmaceutical company with a global presence, traces its roots back to 1935 when it was founded as Chemical Industrial & Pharmaceutical Laboratories Ltd. It rebranded to its current name in 1984. With over 1,500 products in its extensive portfolio, Cipla has a significant presence in the market.
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