Written by : Dr. Aishwarya Sarthe
January 17, 2025
The transaction, announced in a disclosure to the Bombay Stock Exchange (BSE), is pending regulatory clearances and member consent.
The Board of Directors of Morepen Laboratories has approved the transfer of its Medical Devices Business to Morepen Medtech, a wholly-owned subsidiary, on a slump sale basis.
The transaction, announced in a disclosure to the Bombay Stock Exchange (BSE), is pending regulatory clearances and member consent.
Reportedly, the decision was taken during the board meeting held on January 14, 2025, from 5:00 p.m. to 6:40 p.m.
After obtaining requisite approvals and meeting the Business Transfer Agreement (BTA) conditions, the transaction is expected to be finalized by September 30, 2025.
The sale consideration will be based on an independent valuer's report, encompassing the valuation of the building, plant, machinery, net current assets, and other non-current assets and liabilities.
The valuation will align with the balance sheet as of the effective date of transfer and comply with Rule 11 of the UAE Income Tax Rules 1962.
The Board has authorized the company's directors and officers to finalize the BTA and execute other necessary documentation to complete the transaction. Once finalized, the details of the BTA will be disclosed to the stock exchanges.
Morepen Medtech, a newly incorporated subsidiary established on January 8, 2025, will focus solely on the Medical Devices Business.
The company is part of the Morepen Laboratories Group and has 20% ownership held by entities within the promoters’ group, including promoter-related individuals.
Morepen Medtech aims to streamline the medical devices segment by consolidating operations under a dedicated subsidiary.
The Board emphasized that the decision to hive off the Medical Devices Business aligns with the company’s strategic growth objectives and will allow for a more focused approach to the medical devices sector.
The transaction remains subject to “the satisfaction of customary conditions and necessary regulatory clearances,” the company stated in its release.