Strides promoter to make Rs 1,400 cr from sale of Agila unit to Mylan

Strides Arcolab, which recently sold its Agila unit to the US-based Mylan Inc for $1.6 billion (about Rs 10,000 crore) may return half that amount (or about Rs 5,000 crore) to shareholders as a special dividend, sources said.

The implication: shareholders will get Rs 750-800 per share, which closed at Rs 901.70 on Monday. Chairman and managing director Arun Kumar, a first generation entrepreneur who owns a 28% stake in Strides, is expected to receive about Rs 1,400 crore as dividend.

The company did not respond to phone calls and emails from HT on the issue.

In February this year, Mylan and Strides Arcolab signed the agreement under which the US drug major acquired Agila Specialties, the Australian injectible medicine business of Strides.

Foreign institutional investors hold 51.74%  domestic institutional investors 8.07% and retail investors 12.8% in Strides Arcolab.

“It isn’t common for companies to return money from the sale of assets to shareholders,” said an analyst at a leading investment bank on condition of anonymity.

The Prime Minister’s office had cleared Strides Arcolab-Mylan deal in mid August overruling the concerns raised by Department of Industrial Policy and Promotion and Ministry of Health.

 

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