PE Giants Vie for Gland Pharma in USD 3 Billion Blockbuster Buyout
Fosun, which currently holds about a 51% stake in Gland Pharma, has appointed investment banks Morgan Stanley and UBS to facilitate the sale process.
New Delhi: Global private equity giants Blackstone, Brookfield, and Warburg Pincus are reportedly in discussions to acquire a majority stake in Hyderabad-based Gland Pharma from China's Shanghai Fosun Pharmaceutical. The deal is expected to value Gland Pharma at nearly USD 3 billion (approximately Rs 26,046 crore).
Fosun, which currently holds about a 51% stake in Gland Pharma, has appointed investment banks Morgan Stanley and UBS to facilitate the sale process. Binding bids are anticipated next month.
Founded in 1978, Gland Pharma specializes in developing and manufacturing generic injectables, serving nearly 90 countries with a focus on the Indian and U.S. markets. In the December quarter, the company reported revenues of Rs 1,384 crore and a profit after tax of Rs 204.7 crore.
The potential sale is expected to trigger an open offer to Gland Pharma’s shareholders, with the buyers aiming to own between 60-65% of the company post-transaction.
Also Read: Gland Pharma promoter Fosun divests 6 percent stake for Rs 1,754 crore
According to the Moneycontrol report, Fosun is looking to exit Gland Pharma as part of a broader strategy to reduce debt and reallocate resources amid economic and regulatory challenges in China. The deal is attracting significant interest from private equity firms given Gland Pharma’s strong growth trajectory in the global injectables market.
The report further highlights that apart from Blackstone, Brookfield, and Warburg Pincus, other investment firms have also shown preliminary interest in the stake sale. However, the final bidding process is expected to be competitive, given Gland Pharma’s market positioning and its potential for expansion.
Gland Pharma's stock has seen volatility amid reports of the impending sale, reflecting investor sentiment on the potential change in ownership. Market analysts believe that a strategic investor could provide fresh impetus for the company’s expansion, especially in the U.S. and European markets.
The acquisition talks come at a time of heightened scrutiny over Chinese investments in Indian firms, which may influence the regulatory process surrounding the transaction. Given the scale of the deal, it is expected to undergo rigorous scrutiny from the Competition Commission of India (CCI) and other regulatory bodies, reports LiveMint.
Industry insiders suggest that if the deal materializes, it could mark one of the largest private equity transactions in the Indian pharmaceutical sector, underscoring the increasing interest in the country's growing healthcare and pharma industry.
