Torrent Cipla Offer: Torrent Pharmaceutical is reported to be in early talks with Apollo Global Management to secure a loan of up to $1 billion for a potential bid for Cipla, one of India's leading pharmaceutical companies. Torrent aims to raise funding of approximately $3 billion to $4 billion to support its bid for Cipla, which could become India's largest pharmaceutical deal to date.
Besides, Torrent has been in talks with CVC Capital Partners and Bain Capital, who could join as equity partners in a consortium and collectively contribute up to $1.5 billion to the deal.
Cipla's founding family is reportedly interested in selling its 33.4 percent stake in the company, which would trigger an open offer for another 26 percent of Cipla shares, according to Indian regulations. Blackstone is also said to be considering a bid for Cipla.
Leading global asset manager Apollo is exploring the possibility of acquiring a portion of the founding family's stake in Cipla, depending on the progress of negotiations with Torrent.
Solid balance sheets
Both Torrent and Apollo have strong balance sheets, making them attractive players in this potential deal. Foreign banks, including Morgan Stanley and Barclays, are also said to be in talks with Torrent to provide loans and secure financing for the transaction.
Cipla, with a market capitalization of about $12 billion, is known for manufacturing several pharmaceutical products, including the popular anti-allergy drug Cetirizine and generic versions of respiratory medications. The Indian pharmaceutical market is expected to grow significantly in the coming years, making Cipla an attractive target.
Torrent Pharmaceutical, with a market capitalization significantly lower than that of Cipla, specializes in medicines related to diabetes, pain treatment and oncology and operates in more than 40 countries.
(With input from Reuters)
