Three global PE firms vie to buy Hyderabad’s Gland Pharma from its Chinese owner
Subscribe to enjoy similar stories. Global private equity firms Blackstone, Brookfield and Warburg Pincus are in talks to acquire a majority stake in Hyderabad-based Gland Pharma Ltd from China’s Shanghai Fosun Pharmaceutical Co. Ltd in a deal expected to be valued at nearly $3 billion, three people with knowledge of the development said.
Fosun, which retains about a 51% share in Gland Pharma nearly eight years after it acquired a 74% stake in the company for $1.2 billion, is looking to sell its remaining ownership in the company. Fosun has appointed investment banks Morgan Stanley and UBS to help it with the sale process, these people said. “The buyers are currently in talks and binding bids are likely to come next month," one of them said.
Gland Pharma currently commands a market capitalisation of about ₹23,901 crore, or $2.8 billion, on NSE. Also read | Weight-loss drugs: A game changer for India’s top pharma companies Fosun has been looking to exit its investment in Gland Pharma since 2020, when geopolitical tensions between India and China escalated. In June 2024, the Chinese pharma company sold around 6% of its stake in Gland for ₹1,754 crore, or $172 million.
Fosun’s shareholding in Gland dropped further to about 51.8% in December, NSE shareholding data show. “The stake purchase (by the private equity firms) will trigger an open offer to the shareholders of the company (Gland Pharma)," said the second of the two persons cited above. “The buyers are looking to own anywhere between 60-65% of the company post transaction." Spokespersons for Blackstone, Warburg Pincus, Brookfield and Gland Pharma declined comment.
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