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Lupin, CVC sign share purchase agreement

By Our Special Correspondent

MUMBAI OCT. 13. The promoters of Lupin, Desh Bandhu Gupta and his associates, and Newbridge Capital, Hong Kong, today announced that they have called off discussions relating to the possible divestment of 12.5 per cent of promoter stake in Lupin to Newbridge Capital.

Newbridge had issued a non-binding letter of intent to the promoter on July 9, declaring their intention to buy about five million Lupin shares at Rs. 252 per share.

Meanwhile, Lupin announced that CVC International, a Citigroup Global Investment Unit, through its investing vehicle, has entered into a share purchase agreement subject to the satisfaction of certain conditions precedent) to acquire a 12.55 per cent stake in Lupin from Dr. Gupta and his affiliates and associates.

CVC International will invest Rs. 125.9 crores (about $27 million) to acquire this stake. After this sale, the shareholding of Dr. Gupta and his affiliates and associates in Lupin will come down to 54.62 per cent.

Earlier on July 2, CVC International had signed a non-binding term sheet to acquire a 12.55 per cent stake from the promoters.

Lupin has also entered into an investment agreement granting CVC International minority protection rights customary in similar private equity transactions. The investment agreement will be effective upon satisfaction of the conditions precedent contained in the share purchase agreement, stated a release issued by Lupin.

Lupin recently reported a net profit (before extraordinary items) for the quarter ended September 30 was up 86 per cent at Rs. 51.8 crores, compared with Rs. 27.9 crores a year ago.

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