Cadila Healthcare - Divests Animal Health Business: ICICI Securities
Two people shake hands. (Photographer: Daniel Acker/Bloomberg)

Cadila Healthcare - Divests Animal Health Business: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Cadila Healthcare Ltd. announced that it has entered into an agreement to sell its animal healthcare business in India and certain other countries to a consortium led by Multiples Alternate Asset Management.

This deal has been valued at Rs 29.2 billion on debt free and cash free basis which translates into 4.9 times enterprise value/sales and 19.5 times enterprise value/Ebitda on FY21 provisional numbers.

We believe the valuations are decent and the deal is expected to be earnings per share neutral.

The company will use the proceeds to retire debt in short term and to invest aggressively in biosimilars, vaccines and innovative programs over the long term.

Click on the attachment to read the full report:

ICICI Securities Cadila Company Update.pdf

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