Sanofi India, which had closed yesterday at Rs.6123.95, opened in the green today at Rs.6130 but soon dropped to an intraday low at Rs.6050.
The company announced today afternoon that due to the ongoing virus crisis, the closing date of the sale of its Ankleshwar factory has been pushed back to 30th June 2020 from the earlier envisaged date of 31st March 2020.
The Board of Sanofi on 10th Sept 2019 had approved a transaction for the slump sale and transfer of the manufacturing facility at Ankleshwar, Gujarat to Zentiva Private Limited. It was anticipated that the closing of this transaction will be achieved on or before 31st March 2020 and accordingly expected closing dates were announced in disclosures to stock exchanges and postal ballot notice to the shareholders. The shareholders of the Company approved this transaction by way of postal ballot on 30th October 2019.
But now due to delay in receiving regulatory approvals, the closing of this transaction is not likely to be achieved by 31st March 2020. It is now expected that the closing of this transaction will be achieved during the quarter ending 30th June 2020.
The Ankleswar unit was sold to Zentiva for Rs.262 crore. This is one of Sanofi India’s oldest manufacturing facility where brands like Combiflam, Allegra and Amaryl are made. The production of these iconic brands will now be moved to the company’s Goa site and external manufacturing sites as well.