Cipla's arm Meditab sells stake in Jiangsu for $18.5 million

Drug major Cipla on Wednesday said its Mauritius subsidiary Meditab Holdings has signed a deal to sell its entire 48.22 per cent stake in China-based Jiangsu Cdymax Pharmaceuticals for $18.5 million (over Rs 114 crore).

"Meditab Holdings, Mauritius, a wholly owned subsidiary of the company, has entered into a definitive agreement to sell its entire 48.22 per cent equity interest in Jiangsu Cdymax Pharmaceuticals, China to an affiliate of one of the other shareholders of Jiangsu, for a total consideration of $ 18.5 million", Cipla said in a filing to the Bombay Stock Exchange (BSE).

The closing of the transaction is subject to receipt of applicable regulatory approvals in China, it added.

Shares of Cipla were on Wednesday trading at Rs 650 per scrip in the afternoon trade on the BSE, up 1.59 per cent from its previous close.