New Delhi: Chinese pharma firm Shanghai Fosun has decided to scale down its proposed acquisition in Hyderabad-based Gland Pharma to 74 per cent stake at a valuation of not more than $1.09 billion, the company said in a regulatory filing.
Shanghai Fosun Pharmaceutical (Group) Co Ltd had earlier in July last year announced plans to acquire 86.08 per cent stake in Gland Pharma for not more than $1.26 billion.
However, the Cabinet Committee on Economic Affairs (CCEA) had raised objections to the proposal earlier this year, a development that came amid heightened tensions between India and China over border dispute.
In a filing on Hong Kong stock exchange, Shanghai Fosun Pharmaceutical Group said on September 15, 2017, the relevant parties have entered into certain amendments to the transaction documents.
As a result, "the acquisition plan was adjusted that the buyer and co-buyers shall acquire an aggregate of approximately 74 per cent equity interest in Gland Pharma in an aggregate consideration of not more than $1,091.30 million," the filing said.
This would also include a contingent consideration in the amount of not more than $25 million in relation to the Enoxaparin launch.
This is in sharp reduction to the previous agreement of "paying no more than $50 million contingent consideration for Gland Pharma's Enoxaparin sales in the US market".
"As at the date of this announcement, the approvals of the relevant PRC authorities in respect of the acquisition have been obtained, and the United States anti-trust filings and Indian anti-trust filings have been completed," Fosun Pharma said.
The termination date has been extended to October 3, 2017, it added.