Zydus Lifesciences (NSE: ZYDUSLIFE) is entering a new business. For this, the company is going to buy a 50 percent stake in Sterling Biotech.
The company shared information related to this with the stock market on Friday night.
The company will buy this stake from the Teamsek portfolio company. With this deal, the company will enter the fermentation-based protein business.
The company has also informed that after the completion of this deal, Sterling Biotech will become a joint venture of the company in which it will have an equal stake.
The news broke just after the market had closed on Friday. Earlier in the week’s last trading session, the stock closed with a decline of more than 2.5 percent.
What Information Did The Company Give?
In the information sent to the stock market, the company said that Perfect Day Inc, a wholly owned subsidiary of Zydus Lifesciences and a company included in the portfolio of Temasek, has signed an agreement.
Under the agreement, Perfect Day will sell its 50 percent stake in Sterling Biotech in the agreement terms.
Following the conclusion of the transaction, Sterling Biotech will become a 50:50 joint venture, with the company holding an equal share in the board of directors.
Under the plan, the JV will set up a manufacturing facility for fermented animal-free protein to supply worldwide.
Along with this, the company will accelerate the production of high-quality and eco-friendly protein products.
With this acquisition, Zydus will enter the business of manufacturing special biotech products for health and nutrition.
Perfect Day’s products are used in ice cream, cream cheese, sports nutrition products, and baked foods.
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