Cipla Holding B.V., a wholly owned subsidiary of the company in Netherlands, Cipla Netherlands, has entered into a joint venture agreement with its joint venture partner, Ahran Tejarat Company in Iran.
Financials of the deal:
Cipla Netherlands will hold a 75% stake in a joint venture company in Iran whilec will hold the remaining 25% stake. The expected investment by Cipla Netherlands is estimated to be a maximum of Euro 16.875 million. Cipla Netherlands will initially acquire a 75% stake in Issat Company from the JV partner for a consideration of Euro 1.35 million payable in cash and the balance amount of upto Euro 15.52 million is expected to be infused by Cipla Netherlands into Issat Company as equity over next one year period.
Objective of this deal :
The joint venture company proposes to undertake manufacturing and marketing of pharmaceutical products in Iran.
About Ahran Tejarat Company :
As part of the transaction, Issat Company, an existing company in Iran incorporated on 19 January 1998 and currently owned by Ahran Tejarat, is proposed to be used as the JV company for the purposes of the transaction.
Issat Company has a valid pharmaceutical manufacturing license in Iran and also owns certain fixed asset but has not undertaken any business activity since incorporation and as a result does not currently have any turnover.