Fosun taps big buyout funds for Gland Pharma

Buyout firms Advent International, Baring Private Equity Asia (now owned by EQT), Bain Capital, Blackstone, Carlyle and KKR are among those who have been approached to buy the Fosun-owned Gland Pharma, in what would be one of the largest pharma deals in the country, said multiple people aware of developments.

Chinese billionaire Guo Guangchang’s Shanghai Fosun Pharmaceutical Group is the controlling shareholder of listed generic injectables maker Gland, with 57.86% stake. The buyout will trigger an open offer for an additional 26% of the company.

Gland shares ended flat on the BSE on Monday, at Rs 1,714.55 per unit, pegging its market capitalisation at Rs 28,236.96 crore ($3.5 billion). The scrip has fallen by 53% this year.

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Fosun Pharma acquired 74% in Gland for about $1.1 billion in 2017 from an investor group that included PE major KKR. It listed the business three years later in a Rs 6,480-crore initial public offering. It has now mandated Morgan Stanley to find a buyer.

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