Biocon Ltd said on Wednesday it will sell its enzymes venture to Denmark-based Novozymes for $115 million to focus on core bio-pharmaceuticals business.
The agreement between the two companies has been signed on Wednesday and the business transfer agreements are expected to be dosed before the end of third quarter of calendar year 2007, the company said in a communique to the Bombay Stock Exchange.
"We believe this is the right time to divest our enzymes business and focus on unleashing the full potential of our Bio-pharma businesses," Biocon Chairperson and Managing Director Kiran Mazumdar-Shaw said.
Novozymes will leverage our existing enzymes portfolio built over a span of three decades, she added.
The enzymes business would be integrated into Novozymes South Asia Pvt Ltd, a fully-owned affiliate of Novozymes A/S.
Production
and formulation would continue at Biocon site under lease and service agreements with Novozymes.
The Indian firm's board of directors has unanimously recommended the sale, subject to certain conditions including shareholders' approval.
Biocon would seek shareholders' approval for the purpose by postal ballot, to be initiated shortly.
Upon completion of the divestment, Biocon would focus on its bio-pharma business verticals including APIs, biologicals and proprietary molecule, both commercialised and under development.
Allegro Capital Advisors acted as the Company's investment bankers to the transaction.