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Jubilant Pharmova sells stake in Sofie Biosciences for $139.4 million

Jubilant Pharmova Ltd (JPL) on Tuesday said it will be selling its entire stake in associate entity Sofie Biosciences for $139.43 million.
JPL holds a 25.8% stake in Sofie Biosciences, which it acquired through its Singapore-based subsidiary Jubilant Pharma in November 2020 for $25 million.

Of the $139.43 million, $113.63 million is expected to be received upon completion of the merger while receipt of balance $25.8 million is contingent upon achievement of certain future milestones.

JPL said it plans to use these proceeds to reduce leverage and for capex and other corporate purposes.

Sofie has entered into a definitive merger agreement with certain private equity funds managed by Trilantic Capital Partners, a US private equity firm. The merger transaction is expected to close by June 30, 2024, subject to customary conditions and regulatory approvals.

In case the transaction does not close, JPL may receive USD 7 million from Sofie in respect of termination related fees.Sofie is engaged in developing and delivering molecular diagnostics and therapeutics (theranostics). It has radiopharmaceutical production and distribution network, mature contract manufacturing services and high value theranostic intellectual property.Share of profit of Sofie was Rs. 13.3 crores which is 0.2% of the consolidated total income of the company, for the year ended
March 31, 2023.

Shares of JPL dropped 3.02% to close at Rs 559.30 on BSE on Tuesday.

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