Pharma Major Cipla Acquires 26 Percent Stake in AMPSolar Owned Local SPV

The acquisition is expected to be completed by June 12, 2019. Cipla has invested Rs 12.9 crore for the 26 percent stake in the SPV.

Indian multinational pharmaceutical and biotechnology company, Cipla, has announced the acquisition of a 26 percent minority stake in AMPSolar Power Systems Pvt. Ltd. (AMPSolar), a wholly owned subsidiary of AMPSolar Technology Pvt. Ltd. (AMP). AMP, the parent firm of the SPV, is a global firm with over 1 GW of generation assets, and close to 2 GW in the pipeline. The SPV model has been used by the firm to build captive solar projects.

AMPSolar is a Special Purpose Vehicle (SPV) that was formed in February this year by AMP with the purpose of setting up captive solar power projects in the state of Maharashtra and in the  business of generating, producing, accumulating, storing, buying, selling, reselling, transmitting, distributing and supplying electrical power generated using solar energy. The Annual turnover the SPV as on March 31, 2019, was NIL.

The deal (share purchase) is expected to be completed by June 12, 2019. The cost of acquisition is Rs 12.9 crore for the 26 percent stake in the SPV.

Percentage of shareholding I control acquired and I or number of shares acquired;

1. Share Purchase- 2600 equity shares of face value Rs. 10 constituting to be 26% of the paid-up capital upon first stage closing.
2. Subscription of equity- up to 1,26,400 equity shares of face value Rs 10 at par in one or more tranches on or before the actual commercial operation date which is tentatively May 30, 2020.
3. Subscription of Compulsorily Convertible Debentures (CCDS}- up to 1,27,710 compulsorily convertible debentures of face value Rs 1000 each in one or more tranches on or before the actual commercial operation date which is tentatively May 30, 2020.

The Agreement is in line with Mumbai-based Pharma major’s commitment to enhance the proportion of renewable (solar) based power consumption and to comply with regulatory requirement for captive power consumption under electricity laws, it will acquire and maintain the 26 percent stake on a fully diluted basis in the SPV throughout the term of the Power Purchase Agreement, Share Purchase, Subscription and Share Holders Agreement and other transaction documents. Post-Acquisition, the SPV  will become an associate of Cipla Limited, as per the law.

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