Novozymes acquires enzyme activities of Biocon, India
Novozymes A/S has signed a definitive agreement under which it will acquire the enzyme activities of Biocon Limited, Bangalore, India. Novozymes does not currently hold any stake in Biocon.
The total consideration to be paid to Biocon will be Indian Rupees equivalent of USD 115m. The purchase price has been agreed to USD 102m, of which USD 97m will be paid up front, and USD 5m when certain business targets have been met. In addition USD 13m is related to committed service fees and lease payments to be paid over a period of up to ten years. The purchase price amounts to approximately DKK 551m on a cash and interest bearing debt free basis and corresponds to around 4 times FY2006/2007 realised sales.
Biocon's board of directors unanimously recommend the sale, which is subject to certain limited conditions normal in a transaction of this nature including the approval of Biocon's shareholders. Shareholders representing around 60% of the total shares have committed to vote in favour of the transaction.
This transaction is subject to shareholders' approval through a postal ballot. The postal ballot will be initiated shortly, having duration of 30 days. Approval of the transaction requires an acceptance from This transaction is subject to shareholders' approval through a postal ballot. The postal ballot will be initiated shortly, having duration of 30 days.
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