Sun Pharmaceutical Industries has entered into an agreement with Zaza Industrial Holdings KK of Japan to sell hundred percent of its shares in the subsidiary, Sun Pharma Japan Technical Operations Limited. As a result, this subsidiary will no longer be part of Sun Pharma.
The company did not disclose the reasons behind its decision to exit from the Japanese operations.
Details of the Transaction
The turnover of Sun Pharma Japan Technical Operations is minimal, accounting for less than 0.5% of Sun Pharma’s total consolidated revenue for FY 2023-24.
The subsidiary operates a manufacturing facility in Saitama, Japan, which produces products for Sun Pharma Japan Limited.
Plant Supply Agreement
As part of the sale, the plant will continue supplying products to Sun Pharma until May 2026, under the terms of the sale agreement.
This ensures a continued business relationship between the two parties even after the transaction.
Sale Completion Timeline
The parties formalized the sale agreement on December 31, 2024.
As reported by thehindubusinessline.com, Sun Pharmaceutical expects the transaction to be completed by January 31, 2025. The sale consideration for the subsidiary is JPY 1 (Japanese Yen One only).
