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Saturday, June 13, 2009

Wockhardt To Sell Negma Labs

Wockhardt is close to selling Negma Laboratories to repay debt, The French company it acquired in 2006. To disentangle itself from financial distress, Pinewood Laboratories, its other European business, is also up for sale.

Sources say that Wockhardt is close to selling France-based Negma Laboratories and it has appointed merchant bankers for the sale process.

It is also believed that the company is looking to sell its Ireland-based Pinewood Laboratories. The sale of European companies, sources say, is a part of the corporate debt restructuring (CDR) process. European business contributes 55% of Wockhardt's revenue. The largest contribution comes from Negma Laboratories.

Wockhardt acquired Nega, a research-based pharma company, for USD 265 million in 2006 — its biggest acquisition in Europe.

Pinewood Laboratories, an Ireland-based generic company, was acquired by Wockhardt in an all-cash deal for USD 150 million in 2007. The proceeds of the sale will go into the repayment of the company’s debt, which is around Rs 3,100 crore.

Wockhardt has outstanding foreign currency convertible bonds (FCCBs) worth Rs 129 crore which is coming-up for redemption in October 2009.

However, Wockhardt has denied the sale of its European companies.


source: MC

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