Indian multinational pharmaceutical company Cipla Limited announced the sale of its entire stake in Saba Investments Limited on 15 May 2023. Saba Investments Limited is a UAE-based Joint Venture between Cipla Limited and Shibam Group Holding Limited.
Cipla Limited signed a binding term sheet to sell its entire 51% stake in Saba Investment Limited to Shibam Group Holding Limited for a settlement value of US$ 6.50 million.
Cipla Limited holds 51% stake and Shibam Group Holding Limited holds 49% stake in Saba Investment Limited.
Cipla mainly manufactures drugs for the treatment of heart diseases, diabetes, arthritis, respiratory etc. and it is the third largest pharmaceutical company in India.
Shibam Group Holding Limited primarily engaged in investment activities in commercial, industrial, and real estate undertakings and is a company incorporated under the laws of Ras Al Khaimah International Corporate Centre, UAE.
Read Also: Go First Collapse Explained: what and why Go First Airline faced bankruptcy crisis
According to the binding term sheet between Cipla and Shibam Group Holding “the proposed sale is subject to the signing of a definitive agreement” – Within 120 days from the date of signing of the binding term sheet i.e. May 15, 2023 or on satisfaction of the closing conditions as agreed in the definitive agreement, whichever is earlier; or such other date as may be mutually agreed between the parties – on which the deal is expected to be completed.
Consequent to the sale of the entire stake, Saba Investment Limited and its subsidiaries namely Cipla Middle East Pharmaceuticals FZ LLC, UAE (CME) and Cipla Medica Pharmaceutical & Chemical Industries Limited, Yemen (Cipla Medica), will cease to be subsidiaries of Cipla Limited, the company said.
Cipla Medica Pharmaceutical & Chemical Industries Limited (Cipla Medica) reported revenue of USD 9.65 million for the fiscal year ending March 31, 2023, while Cipla Middle East Pharmaceuticals FZ LLC (CME) reported revenue of USD 14.82 million in the same period.
Shares of Cipla Ltd rose by 1.05% to Rs.932.45 on the NSE.