INDIA BUSINESS WORLD - OCTOBER 21^st - NOVEMBER 15^th - 2007

ARCH PHARMALABS ACQUIRES 42% OF AVON ORGANICS

Mumbai-based Arch Pharmalabs has said it is acquiring 42% stake in BSE-listed Avon Organics for Rs 20 crore. Arch Pharmalabs would go for another 20% more stake through an open offer to the public shareholders of Hyderabad-based Avon Organics. Avon Organics would allot equity shares on a preferential basis to Arch at a price of Rs 20 per share. "The acquisition of Avon would give us access to a plant with USFDA approval, which we don't have now," Arch Pharmalabs chairman and managing director Ajit Kamath said. Avon would be a stand-alone listed-subsidiary of Arch.