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China's Fosun Pharma to buy smaller stake in Gland Pharma for $1.09 bn

Revised plan in wake of Indian firm's demand to retain higher stake

Reuters  |  Beijing 

Fosun Pharma, Chinese drug firm, Fosun
A company logo is pictured at the headquarters of Shanghai Fosun Pharma Group in Shanghai, China. (Photo: Reuters)

Group has agreed to cut the size of the stake it will buy in India's to 74 per cent, the Chinese drugmaker said on Sunday.

It said Gland Pharma's founding family wanted to retain a higher stake in the Indian firm because of its good performance.

Fosun had previously been targeting an 86 per cent stake valued at about $1.26 billion. It said in a statement to the stock exchange that the board had approved the new plan, which would involve an investment of no more than $1.09 billion.

The deal had earlier faced some concerns in India, a source has told Reuters.

Under the new terms, said it would spend no more than $25 million for the Indian firm's Enoxaparin prototype sales in the United States, when it gets approval there, cutting the previously proposed amount by half.

The firm has also delayed the closing date for the deal to October 3, from September 26.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, September 17 2017. 17:52 IST