Cipla founding family faces hurdles in stake sale as valuation hits USD 13 billion mark: Bloomberg
New Delhi: The sale of a stake in Cipla Ltd. is in jeopardy as potential buyers have balked at the 1.09 trillion rupee ($13.1 billion) valuation members of the founding family are targeting for the Indian firm in a deal, according to people familiar with the matter.
Negotiations between the family members and prospective buyers, including companies in the industry and private equity firms, are no longer moving forward, as the founders are demanding about 1,350 rupees per share, the people told Bloomberg. According to Bloomberg calculations, the price represents a premium of about 10% over Wednesday’s close.
The family shareholder group, known in India as the promoter group, controls around 33% of Cipla’s shares, which are worth nearly $4 billion at Wednesday’s closing price. Cipla shares have climbed about 16% since CNBC-TV18 reported on July 27 the Hamied family was likely to sell part of their stake.
The family members could sell some or all of their respective stakes in Cipla, the people said, asking not to be identified as the information isn’t public. The firm was founded in 1935 by Non-Executive Chairman Yusuf K Hamied’s father in Mumbai and rose to global prominence by pioneering the sale of cheap, generic HIV drugs across Africa at the turn of the millennium.
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