Fosun mulls sale of India’s $3.6 billion Gland Pharma

Bloomberg

Billionaire Guo Guangchang’s Shanghai Fosun Pharmaceutical Group Co is considering a sale
of Indian drugmaker Gland Pharma Ltd after receiving interest from potential buyers, people familiar with the matter said.
Fosun Pharma, a listed arm of Chinese conglomerate Fosun International Ltd, has been working with an adviser as it informally gauges interest in its controlling stake in Gland, the people said. Companies in the industry and buyout firms are in the early stages of studying the business, the people said, asking not to be identified because the matter is private.
Shares of Gland jumped 5.7% in Mumbai following Bloomberg News report, their largest intraday increase in a month. They have fallen 53% this year, giving the company a market value of $3.6 billion.
Fosun Pharma shares in Hong Kong rose 5.4%. Hyderabad-based Gland specialises in injectable drugs such as antibiotics, oncology and cardiology treatments and has a presence in about 60 countries, according to its website.
A sale would help Gland’s Chinese owner raise cash as the once-acquisitive group seeks to shore up its balance sheet. Fosun International has been exploring options for a number of assets, including French resort operator Club Med and some domestic food and beverage operations, Bloomberg News has reported.
Fosun Pharma’s high valuation expectations could present a hurdle to any potential deal amid a tough financing environment, the people said.
It hasn’t kicked off a formal sale process, and there’s no certainty the deliberations will lead to a transaction, the people said.