Hyderabad-based Gland Pharma Ltd on Tuesday it was not aware of any information that its promoter, Fosun Pharmaceutical Group Co, is considering a sale of shares of the company.
"The company is not in receipt of any communication in this regard from its Promoter(s) and is unable to comment on the same," Gland Pharma said in an exchange filing.
Bloomberg on Tuesday reported that Shanghai Fosun Pharmaceutical Group Co is considering a sale of Gland Pharma after receiving interest from potential buyers.
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 report said. Companies in the industry and buyout firms are in the early stages of studying the business.
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.
Fosun Pharma acquired a 74 percent stake in Gland for about $1.1 billion in 2017 from an investor group including KKR & Co. It listed the business three years later in an $873 million initial public offering in Mumbai, according to data compiled by Bloomberg.
