BackMankind Pharma in talks with PE for consortium bid of Bharat Serums: Report
Mankind Pharma is in talks with PE companies to acquire Bharat Serums and Vaccines. Owner Advent International aims to sell BSV for over $2 billion, with the final transaction expected to be between $1.5-1.8 billion.
PremiumMankind Pharma is in talks with many private equity (PE) companies to form a joint bid to acquire Bharat Serums and Vaccines (BSV) in a consortium, the Hindu BusinessLine reported, citing sources.
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Bain Capital, Blackstone, Carlyle, and KKR expressed interest in BSV after its current owner, Advent International, put it up for sale. While Mankind is in talks with these firms, the HBL report added that not all are interested in forming a consortium. For example, Blackstone has submitted two individual non-binding bids and has not expressed interest in the collaboration.
Mankind and Blackstone did not respond to queries, the report added. Livemint could not independently verify the report.
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Potential Sale Price
Advent International wants to sell BSV for over $2 billion. However, sources told the paper that the final transaction may range between $1.5 -1.8 billion.
Sources told the paper that Delhi-based Mankind is gathering funds to potentially finance the acquisition independently, though it may partner with another investor to avoid straining its balance sheet. The funds will also support organic growth.
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Mankind is the fourth largest drug manufacturer in India by sales. It plans to raise up to ₹7,500 crore through a qualified institutional placement (QIP) and has increased its borrowing limit to ₹12,500 crore. In a recent earnings call discussing FY24 results, and a postal ballot notice for shareholder approval, the company indicated it is preparing for potential acquisitions, both large and small. It referred to reports of interest in Bharat Serums as speculative.
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