Torrent joins fray for Hamied family stake in Cipla, up against Blackstone and Baring PE
Torrent Pharma has joined the fray to buy out the Hamied family, the promoters of Cipla – a company that is more than double (2.3x) its FY23 consolidated revenues, and 2.3 times its profits and 1.46 times its present market value – said multiple people in the know.
Ahmedabad headquartered Torrent is working with JP Morgan to compete with global of the biggest buyout funds Blackstone and Baring Private Equity Asia-EQT. Torrent is looking to partnering with private equity funds and form a consortium but those discussions still preliminary.
Lenders tapped
In parallel, Torrent has approached multiple lenders for funding and is keen to make an all-cash offer. Work has intensified in the past month, said one of the people mentioned above.
A successful acquisition would propel Torrent Pharma to the second largest company by revenues, and in domestic formulation business it will overtake market leader Sun Pharma.
The Hamied family led by Dr. Y.K. Hamied and Mr.
M.K. Hamied, represent the second generation of the founding family and are both well into their 80s. While Dr.
Hamied does not have children, MK. Hamied has 3 children who have all been involved with Cipla in varying capacities. Son, Kamil stepped out in 2015 to pursue other interests.
Daughter Samina Hamied, currently the executive vice-chairperson, has been steering the ship in the recent past but has shied away from an operational role while Rumana Hamied, has historically been involved only in CSR activities. So succession issues and the recent tax raids have precipitated their decision to sell out entirely.
As a promoter group they own 33.47% of the company. A sell out would trigger an open offer for an additional 26% of the company, which means a new owner could end
