Mumbai based drugmaker Wockhardt is working out a new strategy to shore up drooping profit margins and stay ahead of the competition amid current global financial crisis. According to sources, Wockhardt chairman Habil Khorakhiwala has decided to put Wockhardt''s Irish business Pinewood Labs up for sale for $200 million.
It is believed that Sanofi-Aventis, French pharmaceuticals company, is leading the race to buy it but probably for a better price. Wockhardt is sitting on nearly $700 million of debt and it needs the money to repay it. For Wockhardt selling Pinewood is just the first step.
Since the asset continues to have good presence in the UK, Wockhardt hopes to sell it while the going is good. For repaying rest of the debt, the company has been looking to raise more money as well through equity and debt. Khorakiwala holds a 73.64 per cent stake in Wockhardt while LIC holds 5 per cent.
It is believed that Sanofi-Aventis, French pharmaceuticals company, is leading the race to buy it but probably for a better price. Wockhardt is sitting on nearly $700 million of debt and it needs the money to repay it. For Wockhardt selling Pinewood is just the first step.
Since the asset continues to have good presence in the UK, Wockhardt hopes to sell it while the going is good. For repaying rest of the debt, the company has been looking to raise more money as well through equity and debt. Khorakiwala holds a 73.64 per cent stake in Wockhardt while LIC holds 5 per cent.
No comments:
Post a Comment