Natco Pharma Ltd. announced on Thursday, September 25, that its Board of Directors has given in-principle approval to evaluate the demerger of its Agro business into a separate entity.
According to the company’s filing, the move is aimed at value unlocking for its core pharmaceuticals segment while providing operational flexibility and dedicated management for both businesses. The plan also envisions distinct brand positioning for each legal entity.
As part of the reorganization, Natco may retain a minority stake in the resulting company, mainly to extend support in areas such as R&D and patents through Transitional Service Agreements (TSAs) at arm’s length pricing.
The Board has authorized management to appoint advisors, valuers, merchant bankers, and intermediaries to evaluate the optimal capital and shareholding structure. Detailed proposals will be presented to the Audit Committee and the Board before final approval.
