BENGALURU, Nov 29 (Reuters) – China’s Shanghai Fosun Pharmaceutical Group Co Ltd (600196.SS) is considering a sale of Indian drugmaker Gland Pharma Ltd (GLAD.NS), Bloomberg News reported on Tuesday, citing people familiar with the matter.
Gland Pharma said in an exchange filling that it was not aware of any information that Fosun Pharma or its parent, Fosun International Ltd (0656.HK) were considering the sale of its shares.
Shares of the Indian drugmaker closed 7.6% higher, marking its best day since July 2021.
Fosun, which holds a 57.86% stake in Gland Pharma, did not immediately respond to Reuters’ request for comment.
The Chinese firm has been working with an adviser, while companies in the industry and buyout firms are in the early stages of studying the business, according to the report.
Fosun is yet to initiate a formal sale process of its stake in Gland Pharma, the report added.
Fosun Pharma’s debt-laden parent, Fosun International, which was once one of China’s most acquisitive dealmakers, has done a series of stake reductions and sales this year.
As of Tuesday’s close, Gland Pharma shares were down 51.4% for the year, giving it a market value of about $3.8 billion. The stock is up 9.8% since it listed in November 2020.
Reporting by Nandan Mandayam and Nishit Navin in Bengaluru; Editing by Savio D’Souza and Eileen Soreng
Our Standards: The Thomson Reuters Trust Principles.
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