Deal to be sealed latest by Q2 of 2011
Strengthening its product portfolio in the OTC segment, Reckitt Benckiser (RB) has agreed to acquire Paras Pharmaceuticals for about Rs 3,260 crore. In an interview with Jayashree Maji,
the regional director of south Asia and CMD of Reckitt Benckiser India, Chander Mohan Sethi, explains the road ahead for the deal. Excerpts:
n How much time will it take to completely acquire the company?
The transaction is likely to close in either Q1 or early Q2 of 2011, owing to the finalising of tax and legal matters. This is when the cash will be paid.
n What will be the specific shareholding pattern after the acquisition?
RB has agreed to buy Paras Pharmaceuticals from the present shareholders, including the Patel family and Actis, the emerging markets private equity investor.
n What are the immediate steps towards completing the acquisition?
It is difficult to put timelines down at this point. We have just agreed to the purchase. It takes due process and the time involved in completing the same, which is not entirely determined by dates and days.
n How will RB fund the Paras deal?
Our available facilities are for £3.4 billion. We do not disclose the cost of our individual facilities.