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Fosun Pharma will reduce its stake in Gland Pharma by selling 5% for $172 million. The sale price is set at ₹1,750 per share, at a 4.9% discount. Fosun's stake will decrease from 58% to approximately 53.3%. Further sales are anticipated.
Fosun Pharma Industrial Pte, a subsidiary of Shanghai Fosun Pharmaceutical Group, is set to decrease its ownership in India’s Gland Pharma Ltd.
The reduction comes through block deals after failing to sell the stake in a single transaction. Fosun Pharma aims to sell 5% of Gland Pharma, amounting to about $172 million.
The terms of the deal reveal that Fosun Pharma will offer 8.2 million shares at a floor price of ₹1,750 per share, which represents a 4.9% discount compared to the last closing price of ₹1,839.
UBS is managing the deal, expected to decrease Fosun’s stake from 58% to approximately 53.3%.
Exlpore:Gland Pharma Limited Share Price
Fosun Pharma plans additional block sales in the coming months to strengthen its balance sheet, unless buyout firms present a compelling offer.
High valuation expectations from Fosun have reportedly hindered potential sales to private equity firms.
Fosun Pharma originally acquired a 74% stake in Gland Pharma in 2017 for about $1.1 billion from a group including KKR & Co.
Over the past year, Gland Pharma’s shares have risen by 82%, despite being over 55% lower than their 2021 peak.
This block sale marks the second major reduction in Fosun Pharma's stake in Gland Pharma following a successful IPO in November 2020, which raised ₹6,479 crore, including an offer for sale worth ₹5,229 crore by Fosun.
The IPO decreased Fosun’s holding from 75% to 58.36%. As of a recent BSE filing, Fosun Pharma’s stake stood at 57.86%.
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