Morepen Laboratories approves hiving off Medical Devices Business to subsidiary Morepen Medtech

In a release from the Bombay Stock Exchange (BSE), the Board of Directors of Morepen Laboratories announced that it has considered and approved the hiving off of the company’s Medical Devices Business to Morepen Medtech, a newly incorporated subsidiary. The transaction, which will be carried out on a slump sale basis, is contingent upon obtaining the necessary regulatory approvals, as well as the approval of the company’s members.

The meeting, held on Tuesday, January 14, 2025, began at 5:00 p.m. and concluded at 6:40 p.m. The transaction is expected to be completed by September 30, 2025, subject to the receipt of regulatory approvals and the satisfaction of customary conditions outlined in the Business Transfer Agreement (BTA).

The consideration for the slump sale will be determined based on the report of an independent valuer. The report will cover the valuation of the building, plant and machinery, net current assets, and other non-current assets and liabilities, as per the balance sheet on the effective date of transfer. The sale will also comply with Rule 11 of the UAE Income Tax Rules 1962.

Subject to receiving the required approvals, the Board has authorised the company’s directors and officers to enter into the BTA and other relevant documents to execute the transaction. The BTA will be finalised and disclosed to the stock exchanges at a later date.

Morepen Medtech, incorporated on January 8, 2025, is a public company and a subsidiary of Morepen Laboratories. The company was established to carry out the medical devices business. Morepen Medtech is owned by entities that are part of the promoters’ group, with an aggregate shareholding of 20 per cent held by promoter-related entities and individuals.