Acquisition deal talk energises Wanbury
Mumbai-based pharma company Wanbury Ltd is close to finalising its overseas acquisition as per stock market buzz. The company’s stock has appreciated by almost 38 per cent week on week and 64 per cent month on month on the BSE.
The stock ended 13 per cent higher at Rs 164.60 on the BSE today. A total of 9.40 lakh shares were traded against the two-week average quantity of 2.07-lakh shares.
As per market talk, Wanbury is close to inking a deal with 26-million Spanish company. The deal is reportedly to cost anywhere between 35-45 million. There is talk that the European company is in the formulations and oncology segment.
It may be recalled that in June this year the company had made clear its intent to go in for a European acquisition.
When contacted, company officials told Business Line that a European acquisition is on the cards and proposals to this effect are likely to be discussed at the company’s board meet early next week.
Wanbury was formed when bulk-drug company Pearl Organics acquired Wander, an erstwhile Sandoz subsidiary, in 2004.
The company has since undertaken a spate of domestic acquisitions. It recently acquired bulk-drug company Pharmaceutical Products of India (PPIL), a sick Mumbai-based company that had been referred to the Appellate Authority for Industrial and Financial Reconstruction.
Meanwhile, Wanbury is also looking to merge with itself Doctor Organic Chemicals Ltd (DOCL), a company in which it acquired 51 per cent equity last year for Rs 37 crore. Wanbury is also looking to acquire the remaining 49 per cent in an equity swap deal. The deals are being funded partly by proceeds from the $10-million GDR the company floated last October. The remaining funds come partly from banks and through internal accruals.