Cipla Quality Chemicals Industries Limited (CQCIL) has announced the completion of the sale of a controlling stake to a new firm.

The purchaser, Africa Capitalworks, operates as a wholly owned subsidiary of Africa Capitalworks Holdings, an investment management company incorporated in Mauritius.

The transaction, which delayed by about four months, saw Africa Capitalworks acquire more than 1.8 billion shares, constituting a 51.18% ownership stake in the company.

“All conditions precedent for the transaction were fulfilled,” Africa Capitalworks said in a statement. These shares were purchased from Meditab Holdings and Cipla EU, both entities entirely owned by Cipla Limited.

The company name will be changed back to Quality Chemicals Industries Limited as soon as practically possible, and shareholders will be notified accordingly. There has been no change in management upon conclusion of the transaction,” the CQCIL said in a notice.

“The transaction marks a significant milestone as we embark on a new phase of collaboration with our new controlling shareholder directed at increasing our growth and thereby strengthen the healthcare sector in the region.”

In May this year, the value of the transaction was estimated at between $25m to $30m (about sh94b to sh113b), in a disclosure by the Cipla.

Since its IPO in 2018, the Cipla share price has nosedived from sh256.5 at IPO to sh70 as of close of trading on November 14.

In 2014, when Cipla Limited acquired majority shares, the company changed its name from Quality Chemical Industries Limited to Cipla Quality Chemical Industries Limited.