Mumbai, Jan. 1: Temasek Holdings is acquiring 14 per cent in Matrix Laboratories in a deal that comes days after it snapped up 5 per cent of ICICI Bank’s equity.
The price is Rs 1,500 per share, but the total amount paid for the shares could not be ascertained. Matrix had last week announced that a Rs 337.5-crore preferential allotment would be made to Newbridge Capital and “other investors”. In the first stage, 22.50 lakh shares will be issued to Newbridge and others. Later, investors will seek Foreign Investment Promotion Board (FIPB) approval buying 18 lakh shares from existing shareholders through a secondary sale.
Matrix had not revealed the identity of the “other investor”. However, it is now apparent that it was Temasek, a company that is owned by the Singapore government’s ministry of finance. A formal announcement will be made after the approvals come in.
The new investors will pick up a 27 per cent stake, giving the Hyderabad-based drug maker over Rs 600 crore. These funds will be used to retire debts, meet long-term working capital needs and set up a research and development centre. The promoters’ stake in Matrix is slated to come down to 37 per cent following this deal.
Temasek, which holds and manages investments in companies among diverse range of business activities, had picked up a 5 per cent stake in ICICI Bank early December through a block deal. It is believed that the stake was bought from Orcasia, the investment arm of Lombard Insurance Company.
Temasek has invested in companies like Singapore Airlines, Singapore Telecom, DBS Bank and Singapore Power among others.
Matrix manufactures active pharmaceutical ingredients (API) and intermediates. Its top product is Citalopram, contributing over 28 per cent to its sales. This is a generic version of the antidepressant Cipramil.
The company is now in the midst of developing an ambitious drug rage for developed markets, particularly US, which analysts feel could fetch it rich dividends.
During the first half of this year, it posted a net profit of Rs 61.78 crore on sales of Rs 257.5 crore. Of this, 56 per cent came from exports to regulated markets.
