Main shareholders of Duphar-Interfran Ltd. jointly announce restructuring plans
Set up of a new company: Solvay Pharma India Ltd.
SOLVAY PHARMACEUTICALS (Netherlands) and Mr D. Vasant Kumar, the two principal promoters of DUPHAR-INTERFRAN Ltd. (DIL), have jointly announced a "Scheme of Arrangement" to restructure the businesses subject to the approvals of the shareholders and of various statutory authorities governing such a transaction.
Under the Scheme of Arrangement, the two principal promoters of Duphar-Interfran Ltd. (sales : about EUR 15 million for 1999) propose to split the company in two parts: a pharmaceutical business is to be taken on by SOLVAY PHARMA INDIA Ltd, a new pharmaceutical company, and a chemical business, this latter remaining with Duphar-Interfran Ltd.
Every shareholder will receive, free of cost, in addition to shares held in Duphar-Interfran Ltd. two equity shares of Solvay Pharma India Ltd. for every one share held in Duphar-Interfran Ltd.. Both companies will be listed on Stock Exchange in Bombay.
Following the split, the two promoters will exchange their respective shareholdings in the two companies. This will result in Solvay holding 60.5% in Solvay Pharma India Ltd. and Mr Vasant Kumar, holding 60.5% in Duphar-Interfran Ltd (whose name will be changed later on).
This restructuring of Duphar-Interfran Ltd. into two separate companies enables the two principal promoters to take the lead in developing business strategies for their respective companies:
Solvay Pharma India Ltd. will market pharmaceutical products like Duphaston® Duvalidan®, Vertin®, and Colospa®. Mr Dick Buisman, future Managing Director of Solvay Pharma's operations in India says: "We are happy with this restructuring as we can redefine the strategy for our pharmaceutical products and give it a new thrust. Solvay has been involved in DIL for almost three decades. This gives us confidence to take this new step. The majority stake will enable Solvay Pharma India Ltd. to further strengthen our brands, building on the worldwide experience of the global Solvay group to which we belong".
Mr Vasant Kumar said the "restructuring is in line with Duphar-Interfran Ltd.'s strategy of moving away consciously from a manufacturing company to a marketing enterprise. This move will enable us to consolidate and enhance our core competency in chemicals, enabling us to increase shareholder value. We will also be looking at strategic acquisitions in the IT sector for future growth."
Solvay Pharmaceuticals is a group of pharmaceutical companies which focus on four therapeutic areas: cardiology, psychiatry, gastro-enterology and women's health. Solvay Pharmaceuticals is member of the SOLVAY GROUP of chemical and pharmaceutical companies based in Brussels (Belgium). Solvay employs about 33,000 people in 46 countries. Its 1998 turnover worldwide was EUR 7.5 billion from four operating sectors: Chemicals, Plastics, Processing, and Pharmaceuticals.
