In an emailed statement Fosun told us it will buy 74% stake in Gland for $ 1.1bn (€912.6bn) and set a termination date for the deal of October 3.
The Hong Kong Stock Exchange listed firm said: “The stake of Gland Pharma held by KKR Floorline Investment Pte. Ltd. and the Founder Shareholders that will be acquired by Fosun Pharma is adjusted from 69.971% to 57.891%.”
“After the transaction is completed, KKR will no longer own shares in Gland Pharma.”
Government approval
Fosun announced its intention to buy Gland from founders and US investment group KKR in July last year, originally stateing that it would acquire an 86% stake in the Indian firm.
In August this year Fosun said India’s Foreign Investment Promotion Board (FIPB) had referred the takeover plan to the Government’s Cabinet Committee on Economic Affairs for review.
At the time a Fosun spokeswoman told us “The acquisition obtained prior approval from relevant PRC [People’s Republic of China] authorities, and is pending review and approval from the Cabinet Committee on Economic Affairs of India.”
Under rules introduced this year, any foreign investor that wants to buy an Indian drug manufacturer needs to seek Government approval if it plans to buy more that 74% of the target company's shares.
API supply
Gland makes injectable drugs, both own-brand medicines and for other firms on a contractual basis. It operates four facilities in India that produce active pharmaceutical ingredients (API) and finished dosage formulations.
The firm is a major supplier of the API heparin to hospitals in India.