New Delhi: Pharmaceutical company Morepen Laboratories Ltd on Tuesday (January 14) said its board has approved the hiving off of its medical devices business to its newly incorporated subsidiary, Morepen Medtech Ltd, on a slump sale basis as a going concern. The transaction is subject to requisite regulatory and shareholder approvals.
“This is to inform that the Board of Directors (the ‘Board’) of the company at their meeting held today i.e., Tuesday, January 14, 2025 (commenced at 5.00 p.m. and concluded at 6.40 p.m.), has, inter-alia, considered and approved the hiving of the Medical Devices Business, being an undertaking, to Morepen Medtech Limited, a subsidiary of the company, on a ‘slump sale’ basis as a going concern,” Morepen Laboratories said in a regulatory filing.
The decision, taken during the board meeting held on January 14, aims to provide operational independence and a concentrated focus on the medical devices segment. Morepen Medtech Limited, incorporated on January 8, 2025, will take over the business upon fulfilment of all conditions precedent.
The Business Transfer Agreement (BTA) is yet to be executed, and the transaction is expected to be completed by September 30, 2025. The consideration for the sale will be determined based on an independent valuation of assets and liabilities in compliance with Rule 11UAE of the Income Tax Rules, 1962.
Morepen Medtech, a subsidiary of Morepen Laboratories, will have an aggregate promoter group shareholding of 20%. The transaction qualifies as a related-party transaction but will be conducted on an arm’s length basis, with requisite member approvals obtained.
