The government today cleared private equity major KKR’s proposal to acquire stakes in two pharmaceutical companies in deals worth over Rs 1,400 crore, including 38 per cent stake buy in Gland Pharma.
The two deals are estimated to be worth Rs 1,434 crore, sources said.
In the first proposal, the Cabinet, in its last meeting under PM Manmohan Singh, cleared KKR Floorline Investments PTE Ltd’s acquisition of stake in Hyderabad-based Gland Pharma through a combination of primary investment into the company and share purchase from EILSF, an existing investor.
The private equity major is to snap up 37.98 per cent stake in Gland Pharma.
Besides, the Cabinet gave its nod for another proposal where KKR would acquire 24.9 per cent stake in Gland Celsus Bio Chemicals Pvt Ltd.
In January, fair trade watchdog Competition Commission of India approved the deals.
KKR, Gland Pharma and Gland Celsus had entered into the share purchase agreements on November 27 last year. KKR had also entered into a shareholders’ agreement with the promoters of Gland Pharma and EILSF Co-Invest I LLC, an existing private equity investor in Gland Pharma.
Gland Pharma is engaged in the business of production and marketing of specialised injectable formulations for generic versions of drugs, it also manufactures a limited quantity of APIs (Active Pharmaceutical Ingredients) for in-house consumption.