Torrent Pharma in talks with CVC, Bain Capital for Cipla bid: Sources
The second source said Cipla is likely to be more keen on getting a strategic partner on board, like Torrent, instead of a pure financial investor, though a final decision was not likely soon.;
Delhi: India’s Torrent Pharmaceuticals is in talks with private equity funds CVC Capital Partners and Bain Capital to raise up to $1.5 billion to bid for India’s Cipla, according to three sources with direct knowledge of the matter.
Cipla’s founding family is keen to sell their 33.4% holding entirely, sources say, and any bid will also trigger an open offer for another 26% stake, as per Indian regulations. That translates to a $6.75 – $7 billion deal, Bernstein estimated in an Aug. 30 report.
Torrent is likely to reach a decision to finalize its consortium financing partner in the next few days, said the first source.
Bain and Blackstone declined to comment while Cipla, Torrent and CVC did not respond to comments. The Economic Times first reported CVC’s talks with Torrent on Monday.
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