The transaction will also provide an exit to Singapore government’s investment arm Temasek Holdings Pte Ltd, which had invested Rs 109 crore in Medreich for a 25% stake in 2005.
Meiji Group engaged in manufacture and sale of dairy products, nutritionals, confectionary and pharmaceutical products. The group company Meiji Seika Pharma Co. Ltd, manufactures anti-infective drugs, therapeutic drugs for central nervous system and generic drugs. In the post acquisition, Medreich will be a subsidiary of Meiji Seika Pharma.
Meiji Seika Pharma said in a notice to the Tokyo Stock Exchange that it will acquire all outstanding shares of Medreich held by its Indian promoters through Med Holdings (UK) Ltd, Nokha Holdings Pvt. Ltd. It also said Meiji will buy shares from V-Sciences Investments Pte Ltd, an investment vehicle of Singapore’s Temasek.
The acquisition will help Meiji expand its generic drugs portfolio and gain a foothold in India. It will also help Meiji leverage Medreich’s geographical reach.
India is one of the biggest markets for generic drugs. Global pharmaceutical firms are looking to buy stake in Indian firms in a bid to have a pie in the global generics market.
