Strides to pay Rs 500 spl dividend

Strides Arcolab Ltd said on Tuesday that its board has approved a special dividend of Rs 500 per equity share at a face value of Rs 10 each, following the completion of its $1.75 billion sale of the Agila Specialties division to Mylan Inc.

Arun Kumar, founder and Group CEO said that the special dividend amounts to 88 per cent of the free cash float available with it. He said that the company had originally planned to distribute $700-800 million in pre-tax to shareholders. However, the board of directors approved special dividend at Rs 500 per share, resulting in pre-tax distribution of approximately $525 million.

The Bangalore-based company said that the dividend would be paid on or after December 27, 2013. Strides also announced a change of its financial year from January-December to April-March effective April 01, 2014.

Following the Agila sale announced first on February 28 this year, Strides Arcolab said certain revisions were carried out in the transaction. "The aggregate base consideration payable at closing of the transaction was $1,600 million subject to customary closing adjustments. In addition, a sum of $250 million was payable at or following the closing of the transaction based on satisfaction of certain conditions."