Eugia US Manufacturing LLC, USA to dispose business assets

Eugia US Manufacturing LLC, USA, a wholly owned step-down subsidiary of Aurobindo Pharma Ltd, has entered into an asset purchase agreement with Empower Clinic Services New Jersey, LLC to dispose of its business assets as a going concern with related assets and liabilities and employees since capacities and operations are being ramped up in other units of the Company and it shall, upon closing, enter into contract manufacturing arrangements with the buyer.

Cash of USD 52 million to be received from the disposal, plus USD 58 Mn in lease payments made to Eugia US Manufacturing LLC and/or its affiliates, over the 20 years lease term including extensions.

The transaction is expected to close within 90 days from the date of definitive agreement subject to fulfilment of closing conditions referenced in the definitive agreement including financial closure by the buyer.

Shares of Aurobindo Pharma Limited was last trading in BSE at Rs. 1066.35 as compared to the previous close of Rs. 1070.50. The total number of shares traded during the day was 35456 in over 1934 trades.

The stock hit an intraday high of Rs. 1077.95 and intraday low of 1050.00. The net turnover during the day was Rs. 37665300.00.

Source : Equity Bulls

Keywords

AurobindoPharma INE406A01037 EugiaUSManufacturingLLC AssetSale