Torrent in negotiations with Apollo for borrowing up to $1 billion for Cipla bid, states sources

20 Sep 2023 , 10:15 AM

According to two sources in the know, India’s Torrent Pharmaceutical is in preliminary talks with Apollo Global Management to get a loan of up to $1 billion to assist in supporting a planned bid for Cipla.

According to sources, Torrent is trying to acquire $3 billion to $4 billion in financing for its bid for its much larger rival. According to Bernstein analysts, a sale for around 60% of India’s No. 3 drugmaker may be valued up to $7 billion, making it India’s largest pharma deal to date.

According to reports, Torrent has also been in talks with CVC Capital Partners and Bain Capital about becoming equity partners in a consortium and contributing up to $1.5 billion to the purchase.

According to insiders, Cipla’s founding family is eager to sell its 33.4% stake, and a bid for that amount would trigger an open offer for the remaining 26% under Indian regulations.

Reportedly, Apollo is considering purchasing a small portion of the Cipla founding family’s interest, but a final decision will depend on how talks with Torrent progress.

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