Foreign Investment Promotion Board Clears Mylan Laboratories' FDI Proposal

US-based Mylan Laboratories FDI proposal entailing a capital flow of Rs 4,960 crore has been cleared by Foreign Investment Promotion Board (FIPB). Based on the recommendations of FIPB meeting held on July 13, 2015, Mylan Laboratories Ltd's proposal for Rs 4,960 crore FDI has been recommended for approval of CCEA, a Finance Ministry statement said.

In February, US-based Mylan Inc through its Indian subsidiary Mylan Laboratories Ltd (MLL) had signed a definitive agreement to acquire certain female health care businesses from Famy Care Ltd, a speciality women's health care company with global leadership in generic oral contraceptive products (OCPs) for a total consideration of USD 800 million.

The Finance Ministry statement said that Mylan had sought approval on behalf of itself and Jai Pharma Ltd (JPL) for issuance of 17,07,330 equity shares of face value of Rs 10 each by JPL to the existing shareholders of Famy Care (including Orizaba) pursuant to demerger.

MLL will acquire entire shareholding of JPL comprising 17,07,330 equity share of face value of Rs 10 each post the demerger and will also consider an option of issuance of non- convertible debentures to Mylan Luxembourg and or Mylan Group BV Netherlands for an amount up to USD 375 million, it added.

Other proposals cleared by the government includes a Rs 600 crore for FDI by Alpha Pharma Healthcare India to transfer 100 per cent of its holding from one group company to another.

Novartis Healthcare and GSK Consumer were also among the companies whose proposals were cleared.

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Source-PTI