Nirma sole suitor for Glenmark Life
MUMBAI : Nirma Ltd has submitted the sole binding bid for Glenmark Pharmaceuticals Ltd’s 82% stake in listed life sciences subsidiary Glenmark Life Sciences Ltd, three people aware of the matter said. ChrysCapital and Sekhmet Pharmaventures Pvt. Ltd, the other potential bidders, chose to stay away due to differences over valuation.
The bid came in late last week after the company extended the deadline a second time, the people cited above said on condition of anonymity. Mint was the first to report the Nirma group’s plan to spin off its life sciences division on 11 April. “The bid has been placed at a lower valuation than the current market cap of the company," the first person of the three people said.
“Nirma seems to be the sole bidder. Other interested parties have informally communicated that they would be willing to do the deal at a particular price as the stock has moved up significantly in the recent past," the second person said. Nirma, which entered the pharmaceuticals industry with the acquisition of Stericon, may finance the acquisition by raising debt from a syndicate of lenders, The Economic Times had reported earlier.
Kotak Mahindra Capital Co. Ltd, the investment banking arm of Kotak Mahindra Bank, is managing the sale process. Glenmark Pharmaceuticals, which holds around 82% stake in Glenmark Life Sciences, is required to bring it down to 75% by August 2024, that is, within three years of listing.
Read more on livemint.com
