Shares of Plethico Pharmaceuticals zoomed 20 per cent today after reaching settlement with Aurobindo Pharma related to the acquisition of US-based Natrol.
The stock surged 19.97 per cent to Rs 40.85, its highest trading permissible limit for the day on the BSE. At the NSE, the stock soared 19.91 per cent to settle at Rs 40.95.
Shares of Aurobindo Pharma ended the day on a flat note up 0.10 per cent at Rs 1,324.50.
Aurobindo Pharma today said Plethico will pay it $23.3 million to settle a dispute related to the acquisition of US-based Natrol.
“Natrol owned by Aurobindo had approached the Delaware Bankruptcy Court on April 6, 2015 in respect to acquisition of assets of Natrol, USA regarding certain discrepancies and non-performance of obligations by erstwhile owners, Plethico.
Subsequently, discussions were held between Natrol and Plethico group for resolution,” Aurobindo Pharma said in a filing to the BSE today.
Based on the discussions a settlement agreement has been reached, wherein Plethico group would assign $23.3 million in cash in milestone payments, certain global IP rights and other assets,” it added.
Aurobindo Pharma’s 100 per cent subsidiary Aurobindo Pharma USA completed acquisition of Natrol from Plethico for $132.5 million in December 5, 2014.
Aurobindo Pharma had emerged as the highest bidder for acquisition of Natrol, USA.