China’s Fosun updates on $1.3bn takeover of Indian drugmaker Gland Pharma
Chinese firm Shanghai Fosun Pharmaceutical has extended the termination date for its $1.3bn proposal to acquire approximately 86.08% stake in Indian sterile injectables maker Gland Pharma on 26 September.
Fosun said that the acquisition is still subject to the review and approval of the Cabinet Committee on Economic Affairs (CCEA) of India, which is yet to take any decision on the closure of the deal, reported The Economic Times.
In a Hong Kong stock exchange filing, Fosun said: “The approvals of the relevant PRC authorities in respect of the acquisition have been obtained and the US antitrust filings and the Indian anti-trust filings have been completed.”
The company added: “In addition, the acquisition was reviewed by the Indian Foreign Investment Promotion Board, which has been recommended to the Cabinet Committee on Economic Affairs of India for further review.”
Last July, Fosun Pharma, along with private equity firm KKR, announced the proposed acquisition of the controlling interest in Gland.
KKR owns 36% share in the Indian pharmaceutical company.
However, reports emerged that the deal has been stopped due to the growing India-China border tensions.
Gland Pharma vice-chairman and managing director Ravi Penmetsa was quoted by the Press Trust of India (PTI) as saying: “We have not had any official communication from any of the governmental departments so far.”
Based in Hyderabad, India, Gland Pharma claims to have pioneered Heparin technology in the country and has a position in the Glycosaminoglycans range of molecules that are useful for some cancer treatments.