Cipla, Alkem Laboratories in final lap to buy SMT
Cipla and Alkem Laboratories have emerged as the frontrunners to acquire a controlling stake in Sahajanand Medical Technologies (SMT), India’s largest cardiac stent maker, said people in the know. This follows the withdrawal of rival private equity contenders KKR, TPG Capital and Apax Partners after showing initial interest.
The deal is expected to value SMT at Rs 3,500-4,000 crore, and binding offers are due by next week, the people said.
Promoters of SMT—the Kotadia family— plan to keep a minority stake after the transaction that would see other shareholders also divest their holdings. “They could retain about 15-20% stake post the deal,” said one of the persons cited above.
Morgan Stanley PE Asia and Samara Capital collectively own 49% of SMT, while Kotak Pre-IPO Opportunities Fund has a 6% stake. The Kotadias own the remaining 45%.
SMT is also simultaneously working on plans for a domestic public listing if the shareholders don’t get the desired valuation from the stake sale, the people said. They added that an IPO is likely to fetch a comparatively higher valuation for the company.
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