Lupin completes Kyowa divestment to Unison
Lupin Limited has announced that its subsidiary, Nanomi B.V., has completed the divestiture of its entire stake in Kyowa Pharmaceutical Industry Co. Ltd to Unison Capital Partners IV, LPS, and Unison Capital Partners IV, pursuant to the satisfactory completion of all customary closing conditions.
This divestment, which valued Kyowa at an Enterprise Value of JPY 57,361 million, was announced on November 11, 2019, and approved by Lupin’s shareholders.
The transaction generates post tax net cash inflow of approximately JPY 33,429 million (Rs 2157.6 crore) and significantly strengthens Lupin’s consolidated balance sheet as its net debt reduces from Rs 4,361.8 crore (as on September 30, 2019) to Rs 1,075.3 crore. Its net debt to equity ratio now stands at 0.08 as compared to 0.32.
As per the company’s management, this transaction has enabled the company to strengthen its balance sheet and unlock significant value for it and is aligned to focus on key markets and strategic priorities to achieve sustainable growth. It will continue to selectively monetize its complex generics, biosimilars, and specialty assets in Japan with right partners, including Unison.
On Tuesday, the stock of Lupin opened at Rs 745.30. During the morning trading session, it was up by 0.8 per cent at Rs 753.55.