Aurobindo Pharma to acquire Senor Organics Pvt Ltd

Aurobindo Pharma Ltd has announced that the Board of Directors of the Company at its meeting held on November 14, 2006, inter alia, has decided the following:

1. To acquire M/s. Senor Organics Pvt Ltd, a profit making, small size pharma Company based at Hyderabad.

2. To disinvest in principle its entire shareholding in Wholly Owned Subsidiary - Aurobindo Tongling (Datong) Pharmaceutical Company Ltd, China.

The Board has authorized the Managing Director and such other person(s) as it deem fit to negotiate and finalize the above deals.

Note on Acquisition:

M/s. Senor Organics Pvt Ltd is a profit making Pharma Company based at Hyderabad. Its manufacturing unit is situated at Gaddapotharam Village, Jinnaram Mandal, Medak District, A.P. Its unit is spread over in about 1.5 acres of land, adjacent to the Company's unit 8. Its sales for last two Financial Years were Rs 4.5 crs and Rs 2.8 crs. It has a paid up capital of Rs 1.5 Crores divided into 15 lakh equity shares of Rs 10 each.

It is manufacturing APIs and intermediaries and well equipped with infrastructure. The Board feels that the said manufacturing site is of strategic importance for the Company’s growth and offers the ideal site for integration with operations of the Company in a short span of time.

Note on Disinvestment:

Aurobindo Tongling (Datong) Pharmaceutical Company Ltd (ATDPL) situated at Economic & Technology Development zone, Datong, Shanxi, China, is the Company's WOS, engaged in the manufacture of pharmaceutical products in China catering to local Chinese market. Its entire shareholding is equally held by the Company and Aurobindo (Datong) Bio-Pharma Company Ltd, China. The said Company is incurring losses since last three years. The said Company achieved sales of Rs 131 Crores and incurred net loss of Rs 6.55 Crores for the year ended March 31, 2006. The Board feels that the said disinvestment would be in the best interest of the Company.

Aurobindo (Datong) Bio-Pharma Company Ltd, China is manufacturing raw material like 6 APA etc. for the Company's captive consumption and this Company would continue its operations in China.

Source : Equity Bulls

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