New Delhi: The Board of Directors of Morepen Laboratories has approved the transfer of its Medical Devices Business to its subsidiary, Morepen Medtech, via a slump sale. The decision, announced in a regulatory filing with the Bombay Stock Exchange (BSE), is subject to shareholder and regulatory approvals.
Key Details of the Transaction
The proposed transaction, expected to conclude by September 30, 2025, is contingent on compliance with regulatory conditions outlined in the Business Transfer Agreement (BTA). The consideration for the slump sale will be determined based on an independent valuation report covering key assets, including the building, plant, machinery, and liabilities, as per the balance sheet on the transfer’s effective date.
Morepen Medtech, incorporated on January 8, 2025, was established specifically to handle the company’s medical devices operations. The subsidiary is majority-owned by Morepen Laboratories, with 20% of its shareholding held by promoter-related entities and individuals.
Meeting Highlights
The Board meeting to discuss the transaction was held on January 14, 2025. Following the approval, the company’s directors and officers have been authorized to finalize and execute the BTA, along with other related agreements. Details of the BTA will be disclosed to the stock exchanges once finalized.
Strategic Implications
This move aligns with Morepen Laboratories’ strategy to streamline its operations and allow the subsidiary to focus exclusively on the growing medical devices market. By transferring assets to a specialized entity, the company aims to enhance efficiency and cater to market demands in a more targeted manner. Further updates, including the valuation report and final regulatory clearances, are awaited.
