Shanghai Fosun Pharmaceutical Group Co has agreed to buy Hyderabad-based drugmaker Gland Pharma Ltd for about $1.26 billion (nearly Rs 8,500 crore) in what could be the largest acquisition of an Indian company by a Chinese firm. The largest Chinese deal in India had been China’s top online-shopping company, Alibaba Group Holding Ltd. Last year, its financial affiliate put $1 billion into the operator of Indian payment firm Paytm, and an Alibaba-led group invested in Indian online retailer Snapdeal.com. Fosun Pharma will acquire 86 per cent of Gland Pharma and a definitive agreement has been signed for the deal, the KKR-backed Indian firm said in a statement. Gland Pharma’s founders and US private equity firm KKR, who jointly hold around 96 per cent of the drugmaker, will sell most of their stake to Fosun. “Based on the agreement, Fosun Pharma will purchase all shares of Gland owned by KKR Floorline Investments Pte Ltd in addition to shares purchased from other shareholders of the company,” it said. KKR bought a 38 per cent stake in November 2013 for about $200 million, saying the company had a record of strong financial performance. Gland founder P V N Raju and his son Dr Ravi Penmetsa will continue to be on the board, and Dr Penmetsa will continue as the Managing Director and CEO. The family will retain a small stake in Gland, but KKR, which invested in Gland in 2014, is exiting the firm completely. Set up in 1978, Gland develops and manufactures generic injectables for use in nearly 90 countries on five continents, with a focus on the Indian and US markets. It owns four factories. Chen Qiyu, chairman of Fosun Pharma, said in a statement that the Gland Pharma deal will strengthen the firm’s global presence and accelerate the speed of its internationalisation.
