AHMEDABAD: Ahmedabad-based drug maker Zydus Cadila Group, to merge its three subsidiaries with its listed entity Cadila Healthcare Ltd.BSE -0.43 %
In a statement issued on Bombay Stock Exchange on Monday, Cadila Healthcare Ltd said that its Board of Directors as well as the Board of Directors of Zydus Animal Health Ltd (ZAHL), Liva Healthcare Ltd (LHL) and Zydus Pharmaceuticals Ltd (ZPL) has approved the amalgamation of all the three entity with the flagship company Cadila Healthcare.
In 2000, Zydus Cadila had created a strategic alliance with Ambalal SarabhaiBSE -4.49 %Enterprises to integrate the animal healthcare business of both the group to create 'Sarabhai Zydus Animal Health Ltd'. Later in 2007, Cadila Healthcare acquired the entire stake in the joint venture to make its wholly owned subsidiary - ZAHL. Same year in 2007, Zydus Cadila acquired dermatology company Liva Healthcare.
In terms of the Scheme ZAHL, LHL and ZPL will be amalgamated with the Company followed by the dissolution without winding up of the ZAHL, LHL and ZPL. However, this is subject to and conditional upon requisite approvals and section being received as per the law.
Upon the Scheme being effective, in consideration of the transfer and vesting of the undertaking of ZAHL, LHL and ZPL (the transferor Company) in the Cadila Healthcare Ltd, all the equity shares issued by the Transferor Companies and held by the Company and its nominees shall stand cancelled and extinguished and in lieu thereof, no allotment of any shares in the Company shall be made.
On Monday, Cadila Healthcare's stock price surged marginally closing at Rs 770.35 on Bombay Stock Exchange.