The Mumbai-based Sun Pharmaceuticals is not in a mood to give a revised take over proposal submitted to IDBI for Hindustan Antibiotics Limited as desired by the lenders' consortium. The company's earlier proposal to take over the assets and liabilities of the company was rejected by the consortium as 'unacceptable' last month, following which it was asked to revise the offer.
However, the IDBI, the operating agency appointed for the revival of the Pune based public sector pharma company by the BIFR, will be submitting the revival proposal prepared by the company management to the Board in few days.
As per the takeover proposal, Sun Pharma had offered that it would bring Rs 67.71 crore in settlement of the liabilities of Hindustan Antibiotics arising out of termination of its entire employees and the existing debts while they would generate Rs 76 crore in cash by sale of just 10 per cent of the HAL assets and also through the anticipated tax benefits. In effect, when the deal comes through the government would be transferring the PSU's assets worth Rs 772.86 crore along with a benefit of Rs 9.29 crore to Sun Pharmaceuticals. The company had also asked for a number of subsidies and concessions from the government in the said scheme.
It may be recalled that on February 10, the IDBI has opened the bids submitted by the Sun Pharmaceuticals and the HAL employees union and following the objection raised by the concerned parties, the Bank had referred both the proposals to the BIFR without taking any decision. However, the lender's consortium refused Sun's offer afterwards.