Jubilant Pharmova Ltd.’s subsidiary plans to sell its entire 25.8% stake in US-based Sofie Biosciences Inc. for a total of $139.43 million.

The company’s Singapore-based unit Jubilant Pharma Ltd. (JPL) in November 2020 invested $25 million in Sofie, which is engaged in developing and delivering molecular diagnostics and therapeutics, the Indian drugmaker said in a stock exchange announcement.

Sofie has now entered into a definitive merger agreement with certain private equity funds managed by Trilantic Capital Partners, Jubilant said. The merger transaction is expected to close by 30 June, subject to customary conditions and regulatory approvals, it added.

“Consequently, JPL plans to sell its entire 25.8% equity stake in Sofie for aggregate proceeds of about $139.43 million, including certain preferred returns,” Jubilant said.

The company said JPL will receive $113.63 million upon completion of the merger, while the remaining $25.8 million is contingent upon achievement of certain future milestones.

JPL plans to use the proceeds to reduce leverage as well as for capital expenditure and other corporate purposes.

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