Shanghai Fosun Pharmaceutical (Group) Co will sign a definitive agreement later on Wednesday to acquire a controlling stake in Hyderabad-based Gland Pharma in a $1.4 billion transaction, paving the way for the Chinese firm to expand its research and manufacturing capacity in India.
Fosun has agreed to acquire 96 percent stake, which includes shares held by founders of Gland Pharma Ravi Penmetsa and family and private equity giant, KKR & Co LP. However another source said Gland will initially buy 86% of the company while Penmetsa may retain a 10% stake. The deal may need FIPB approval. “We will be signing the deal later today at Hong Kong and an official announcement will be made to the Chinese exchanges later,” said a source, with direct knowledge of the matter. When contacted, KKR and Gland Pharma promoters declined to comment. Fosun was not immediately reachable for a comment.