Fosun Is Said to Consider $500 Million India IPO of Gland Pharma
(Bloomberg) -- A unit of Fosun International Ltd., the Chinese group backed by billionaire Guo Guangchang, is considering an initial public offering of Indian drugmaker Gland Pharma Ltd., people with knowledge of the matter said.
Shanghai Fosun Pharmaceutical Group Co. is in preliminary talks with potential advisers about an Indian IPO for Gland, according to the people, who asked not to be identified because the information is private. The share sale could raise about $500 million, the people said. Deliberations are at an early stage, and any listing is unlikely to take place before next year, the people said.
Fosun Pharma is weighing an offering after buying a roughly 74 percent stake in Gland for $1.1 billion last year. Fundraising from first-time share sales in India has risen 41 percent this year to $4.3 billion, data compiled by Bloomberg show.
Hyderabad-based Gland, founded in 1978, specializes in injectable drugs such as antibiotics, oncology and cardiology treatments. A spokeswoman for Fosun Pharma declined to comment.
Fosun has continued to expand its international business empire, which has holdings ranging from consumer brands to insurance, amid a Chinese crackdown on overseas deals that's forced other conglomerates like HNA Group Co. to rein in their ambitions. This year, Fosun has announced acquisitions of Brazilian brokerage Guide Investimentos and French fashion house Lanvin.
The conglomerate received Hong Kong stock exchange approval this month to spin off its tourism and hotels unit, which owns Club Med SAS and luxury hotel development Sanya Atlantis.
To contact Bloomberg News staff for this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;George Smith Alexander in Mumbai at galexander11@bloomberg.net;Jing Yang de Morel in Shanghai at jyang543@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Young-Sam Cho at ycho2@bloomberg.net, Timothy Sifert
©2018 Bloomberg L.P.
With assistance from Editorial Board
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