Chinese international conglomerate and investment company Fosun Group will acquire a majority stake of approximately 86% within Indian pharmaceutical company Gland Pharma for a value of up to $1.26bn.
The acquisition is to be made by Fosun Group subsidiary Shanghai Fosun Pharmaceutical Group and will include all shares owned by American private equity firm KKR, which held approximately 38.410% equity interest in Gland.
The buy-out will also include the shares held by Gland Pharma founder Ravi Penmetsa and his family, while the remaining stake will continue to be owned by the founder family.
The acquisition will be carried out after receiving approval from the Competition Commission of India (CCI) and the Foreign Investment Promotion Board (FIPB).
Being China’s largest acquisition of an Indian company, the deal will currently enable Fosun Pharma to have full access to a new collection of injectable medicines, along with manufacturing facilities in the country.
The acquisition will be carried out in cash and such consideration payment will be funded by self-raised funds of Fosun Pharma Group.
In order to complete the acquisition, Fosun Pharma Group proposes to apply for a loan totalling no more than $800m.
Fosun Pharma chairman Chen Qiyu was quoted by The Wall Street Journal as saying: “Fosun Pharma is dedicated to implementing our investment model of ‘Combining China’s Growth Momentum with Global Resources’ with the win-win cooperation with Gland.”
Gland Pharma’s generic injectables that include Heparin, which helps prevent blood clots within individuals post-surgery, are mainly sold in the US market.