Hovid to buy control of Biodeal for 128M Rs

Malaysian pharmaceutical company Hovid Bhd says it has entered into a memorandum of understanding to acquire a controlling stake in Indian drugmaker Biodeal Pharmaceuticals. Under the MOU, Hovid has agreed to invest around 127.5 million rupees ($3.2 million), having already deposited 6.5 million rupees with an independent third party to indicate its commitment to the transaction.

The Kula Lumpur-headquartered firm said that it expects due diligence procedures for the deal to be completed by February 28, adding that it intends to make a further announcement when the formal shareholders agreement has been executed. The company went on to say that, under the terms of the MOU, the completion date for the share acquisition can be extended for a maximum of six months beyond the due diligence date, assuming all the required regulatory approvals from both the Malyasian and Indian governments are obtained.

Hovid added that it would finalize all the other necessary aspects of the transaction, including payment of the balance subscription sum, on March 31, subject to approval by its board of directors. Further terms of the deal were not disclosed.