Duphar, Solvay to recast JV

Duphar, Solvay to recast JV
ENS ECONOMIC BUREAU

MUMBAI, JANUARY 17: Duphar-Interfran Ltd and Belgium's Solvay have agreed to recast their alliance to create a separate listed firm to focus exclusively on pharmaceuticals, a statement by Duphar-Interfran (DIL) said on Monday.

The two partners have agreed to split Duphar into two and the new company will be listed on the stock exchanges, the statement added. Duphar will continue to focus on its chemicals business, said the statement.

Solvay now has a 38.8 per cent stake in Duphar-Interfran. The chemicals business will remain with DIL. Every DIL shareholder while continuing to hold existing shares will be allotted two additional shares of the new pharma company for every one share held, the statement added.

The proposal, jointly formulated by Solvay Phamaceuticals and D Vasant Kumar and family, the founders of DIL, was approved by the board of directors.Post restructuring, Solvay will have a 60.5 per cent stake in the new company while D Vasant Kumar and family will have 60.5 per cent stake in DIL.Solvay will transfer its entire stake of 38.8 per cent in DIL to Vasant Kumar and family in lieu of the latter's 21.7 per cent in the new pharma company.

The public will hold the remaining shares in both the companies, the statement said. In addition, two brands Vertil and Colospa which are presently owned by Vasant Kumar and family will be assigned to Solvay as part of consideration for the realignment.

After the demerger, DIL will seek to enhance its core competency in its existing chemicals business, explore growth opportunities and strategic options in knowledge-based industries, including R&D, Biotech and information technology for future growth, the statement said.