- By Vaamanaa Sethi
- Tue, 19 Sep 2023 03:33 PM (IST)
- Source:JND
India’s Torrent Pharmaceutical is in talks with Apollo Global Management to secure a loan up to $1 billion to help in funding the planned bid for Cipla, two people familiar with the matter were quoted as saying by Reuters.
The sources also revealed that Torrent is hoping to secure $3-$4 billion in financing for the bid for its much bigger rival Cipla. Bernstein analysts were quoted as saying that the deal estimated for about 60% of India's No. 3 drugmaker could be worth as much as $7 billion - potentially India's largest pharma deal to date.
It was earlier reported that Torrent has also been in talks with CVC Capital and Bain Capital who might become equity partners in a consortium and contribute as much as a combined $1.5 billion to the deal.
Apollo is considering purchasing a small part of Cipla's founding family stake, however, the talks with Torrent Pharma are still in progress. “Apollo is quite bullish on their Asia strategy, and India in particular...both Cipla and Torrent have strong balance sheets," the person said.
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Sources indicate that the founding family of Cipla is eager to divest their 33.4% stake, and making a bid for this shareholding would also necessitate compliance with Indian regulations, which mandate an open offer for an additional 26%.
Foreign banks, including Morgan Stanley and Barclays, are also in talks with Torrent to extend loans and arrange financing for the deal, sources have said.