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Temasek buys stake in Medreich
BS Bureau in Bangalore |
October 18, 2005 12:56 IST
Temasek Holdings has picked up a sizeable stake for Rs 100 crore (Rs 1 billion) in Medreich group (2004-05 turnover Rs 265 crore), a Bangalore-based pharmaceutical formulation company.
Medreich promoters, however, refused to indicate the precise size of the stake."The Medreich group has significant strengths in the formulation of pharmaceutical products. We plan to take it forward to embark on the next phase of growth expanding overseas," said Tan Suan Swee, managing director of investment, Temasek Holdings.
The promoters said the move was to strengthen Medreich's branded generic business and the funds were to be deployed for expansion of manufacturing facilities in India and foray into new markets such as France, Spain, China, Far East, Latin America and Africa.
For the transaction, Yes Bank was strategic and financial advisor to the Medreich.
"Temasek's investment has come at an opportune time in the growth cycle of the group and will enable us to further strengthen operations in the branded generic business in key geographies in Europe, Far East Asia and Africa," the three promoters, Rajeev Mehta, Keith de Souza and C P Bothra said in a joint statement.
"Temasek will provide valuable strategic networking, adding significant value to the business model by way of opening up opportunities in various south-east Asian and north Asian regions," they added.
The Medreich group provides outsourced formulation manufacturing services to pharmaceutical companies and also manufactures and distributes its own branded generics. The company says it has over the time built up a standing in terms of quality and service.