Lupin's arm completes stake divestment in Kyowa

New Delhi, Dec 18 () Drug maker Lupin on Tuesday said its subsidiary Nanomi BV has completed divestment of its entire stake in Kyowa Pharmaceutical Industry to Japan-based equity fund Unison Capital Partners.

Nanomi BV held 99.82 per cent stake in Japan-based Kyowa, Lupin said in a statement.

Last month, Lupin's board had approved the stake sale in Kyowa for an enterprise value of JPY 57,361 million (around Rs 3,702 crore).

The Mumbai-based drug firm said the transaction generates post tax net cash inflow of around JPY 33,429 million (Rs 2,157.6 crore) and significantly strengthens its consolidated balance sheet.

The deal helps the company pare its net debt from Rs 4,361.8 crore (as on September 30, 2019) to Rs 1,075.3 crore.

The company's net debt to equity ratio now stands at 0.08 as compared to 0.32 earlier.

"This transaction enables us to strengthen our balance sheet and unlock significant value for the company and is aligned with our vision to focus on our key markets and strategic priorities to achieve sustainable growth," Lupin Managing Director Nilesh Gupta said.

The company would continue to selectively monetise its complex generics, biosimilars and specialty assets in Japan with the right partners, including Unison, he added.

Lupin shares were trading 0.87 per cent up at Rs 754 apiece on the BSE. MSS ANU