TMCnet News
INVESTMENT IN PHARMA(Pakistan & Gulf Economist Via Acquire Media NewsEdge) The government has cleared private equity major KKR's proposal to acquire stakes in two pharmaceutical companies - Gland Pharma and Gland Celsus Bio Chemicals - after insisting on a no non-compete agreement to ensure that supply of generic medicines is not affected. The two deals worth around Rs 1,400 crore were held up as the Cabinet did not discuss the proposals despite clearance by the Foreign Investment Promotion Board and the Competition Commission of India. In the first proposal, the Cabinet cleared KKR Floorline Investments PTE Ltd's acquisition of nearly 38% in Hyderabad-based Gland Pharma through a combination of primary investment into the company and share purchase from EILSF, an existing investor. These transactions were worth close to Rs 1,150 crore In addition, the Cabinet approved acquisition of another 24.9% in Gland Celsus Bio Chemicals for around Rs 240 crore. Sources said the department of industrial policy and promotion (DIPP) was insisting that generics supplies should not be affected, which prompted the finance ministry to circulate a supplementary note on the clause. 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. |