Natco Pharma Ltd approved a scheme of arrangement to demerge its agrochemicals business into its wholly owned subsidiary, Natco Crop Health Sciences. The decision was taken during a meeting of the company’s board of directors on Tuesday. Under the proposed restructuring plan, existing shareholders of Natco Pharma will receive shares in the resulting company on a 1:1 basis, ensuring proportional ownership in the newly separated agrochemicals entity. The move is expected to help the company streamline its operations and strengthen focus on its core pharmaceutical and crop protection businesses.
Formation of New Subsidiary in Nigeria
In addition to the demerger decision, the Hyderabad-based company has also approved a proposal to incorporate a wholly owned subsidiary in Nigeria. The new entity, which will operate under the name Natco Pharma Nigeria, will be established with an initial investment of up to $1 million. The expansion is aimed at strengthening the company’s international presence and exploring growth opportunities in the African pharmaceutical market. As reported by thehindubusinessline.com, as part of its ongoing corporate restructuring, the board has also approved the liquidation of Natco Pharma Australia Pty Ltd, a wholly owned subsidiary of the company in Australia.
