Cipla withdraws demerger plan of India based US business and Consumer business, to examine more efficient option - (India Infoline via NewsPoints Desk)

  • Cipla has withdrawn a demerger plan of its India-based US business and consumer business into two wholly-owned subsidiaries Cipla BioTec and Cipla Health, India Infoline reported.

  • The company said that the board believes "the proposed transfer of India-based US business undertaking in favour of CBL and the proposed transfer of the consumer business undertaking in favour of CHL will simplify the structure, maximize efficiencies and has potential to unlock value for the stakeholders of the company."

  • However, the drugmaker said that "having been informed that certain changes have made it feasible for these to be done efficiently through an alternate option and without the need for a scheme of arrangement," the board has approved not to proceed with the scheme and "to examine the transfer of its India-based US business undertaking to CBL and its consumer business undertaking to CHL by way of a more efficient option."

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