Unimark Remedies Ltd, a Rs 421 crore company engaged in manufacturing of bulk drugs in segment such as cardio vascular and antibiotics, formulations in antibiotics, oncology, etc., is acquiring KDL Biotech Ltd for a total consideration of Rs 13.73 crore.
KDL Biotech is engaged in the production of semi synthetic penicillin-based products and bio-technology products at its manufacturing plant at Village Savroli, in District Raigad. KDL was promoted by Synpac Pharmaceuticals Ltd and the Somany Group. At present, KDL equity capital stood at Rs 16.76 crore and the promoters are holding 35.08 per cent of the share capital.
Unimark has entered into a share purchase agreement with Synpac Pharmaceuticals and Morganite Trading Company Ltd to acquire 56.40 lakh and 2.40 lakh respectively, fully paid equity shares of face value of Rs 10 each at the price of Rs 8.50 per share in July 2008 for an aggregate consideration of Rs 5 crore.
Unimark has also entered into a share subscription agreement to subscribe to 72.73 lakh shares on a preferential basis constituting 30.26 per cent of the expanded equity capital at the price of Rs 12 per share aggregating to Rs 8.73 crore. After the proposed preferential offer, the fully paid-up share capital of KDL will be Rs 24.04 crore and Unimark will be holding 85.05 per cent equity stake in KDL.
Unimark achieved net sales of Rs 420.98 crore during the year ended March 2008 as against Rs 306.33 crore in the previous year. Its net profit increased to Rs 28.20 crore from Rs 25.12 crore. KDL reported net sales of Rs 166 crore for the eighteen months period ended September 2007 and incurred a net loss of Rs 13.55 crore. With this acquisition, Unimark is expecting to expand its business in the segment of antibiotics and increase its presence in the entire segment of antibiotics, which will enable it to utilize its manufacturing capacities in an optimum manner.