Torrent Pharma in discussions with Apollo to borrow up to USD 1 billion for Cipla bid: Sources
Apollo is considering purchasing a small part of the Cipla founding family's stake but a final decision will depend on how talks progress with Torrent, said one of the two people who declined to be identified as the talks were private.;
Mumbai: India's Torrent Pharmaceutical is in preliminary talks with Apollo Global Management to secure a loan of up to $1 billion to help fund a planned bid for Cipla, two people briefed on the discussions said.
Torrent is hoping to secure roughly $3 billion to $4 billion in financing for the bid for its much bigger rival, they said. Bernstein analysts have estimated that a deal for about 60% of India's No. 3 drugmaker could be worth as much as $7 billion - potentially India's largest pharma deal to date.
Torrent has also been in talks with CVC Capital Partners and Bain Capital who might become equity partners in a consortium and contribute as much as a combined $1.5 billion to the deal, sources have said.
Read also: Torrent Pharma in talks with CVC, Bain Capital for Cipla bid: Sources
Cipla's founding family is keen to sell their 33.4% holding, sources say, and a bid for that amount would also trigger an open offer for another 26% as per Indian regulations.
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