Pharmaceutical company Cipla's subsidiary in the Netherlands, Cipla Holding BV, has entered into a joint venture with Iran's Ahran Tejarat Co. The joint venture aims at manufacturing and marketing pharmaceutical products in Iran.
Subject to requisite regulatory approvals, the Indian pharma company aims to complete the transaction by March next year, Cipla said in a statement.
Cipla Netherlands would hold 75 percent stake while Ahran Tejarat would hold the remaining 25 percent stake in the joint venture. The initial investment by Cipla Netherlands is estimated to be about Euros 16.87 million.
"Cipla Netherlands will acquire the fixed asset of Issat Company (owned by Ahran) from Ahran for Euro 1.35 million in cash and balance Euro 15.52 million via equity infusion over one year," the statement said.
"Issat Co. has a valid pharmaceutical manufacturing licence in Iran and also owns certain fixed asset but has not undertaken any business activity since incorporation (in January 1998) and as a result, does not currently have any turnover."
Cipla has a wide presence internationally, covering South East Asia, Middle East, Latin America, Africa, Australia, New Zealand and Russia-CIS. The company offers a diverse range of more than 1,000 products in over 100 countries.
Cipla shares closed at Rs 561.60 apiece on Thursday, down 1.21 percent from its previous close on the Bombay Stock Exchange.
