Fosun Pharma to sell up to 5% stake in Gland Pharma through a block deal today

19 Jun 2024 , 10:25 AM

Fosun Pharma Industrial Pte will sell its stake in India’s Gland Pharma Ltd in tranches after failing to sell it all at once.

According to the terms of the agreement, the business will sell 5% of the pharmaceutical in a block trade for around $172 million. It has offered 8.2 million shares at a floor price of ₹1,750 each, representing a 4.9% reduction from the previous close.

Fosun Pharma, a wholly owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co, owns approximately 58% of Gland Pharma, with a market value of $3.6 billion.

It will conduct additional block sales in the coming months to shore up its financial sheet unless buyout firms make an offer, according to people familiar with the situation.

Fosun Pharma’s lofty valuation expectations for Gland Pharma have hampered a prospective sale to private equity companies, according to the sources, who asked not to be identified because they are sharing confidential information.

Gland Pharma manufactures injectable medications such as antibiotics, oncology, and cardiology therapies and operates in over 60 countries, including Canada, Australia, India, and the United States, according to its website.

In 2017, Fosun Pharma acquired a 74% share in Gland Pharma for around $1.1 billion from a partnership that included KKR & Co. Three years later, the business was listed in Mumbai. The shares of the Hyderabad-based company have gained 82% in the last year, but are still more than 55% lower than their top in 2021.

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