Y.K. Hamied, the nonexecutive chairman of Indian pharma giant Cipla, is taking his stake to more than 20% at the end of this month as the company prepares for new leadership.
Hamied will own 20.76% of the Indian giant following the sale of an additional 5% to him that will take place at the end of the month.
The move comes in the wake of the resignation of the head of Cipla's Indian operations who last little more than a year in the job.
Cipla also saw at least 8 senior executives exit around June of last year with the majority of them being department heads including the CFO, the head of HR, and the head of finance, according to media reports.
Cipla is also putting into place a new management structure that includes the development of a 6-member management team that the company hopes will help it expand abroad.
Cipla this month called the new structure part of the company's "ongoing transformation journey to simplify decision making and improve operational excellence."
|Cipla CEO Subhanu Saxena|
The new council will be led by Subhanu Saxena, managing director and global CEO.
The sale to Hamied of the additional shares will also play a role in the Hamied family's management of its holding and it is expected that the family will vote as a single unit on future issues, according to a report by NDTV.
Hamied's transaction was considered by India's Securities and Exchange Board, which ruled it would not trigger an open offer and will qualify as tax exempt, the NDTV report said.
- here's the report from NDTV