Gland Pharma shares fall after major block deal

Around 1.02 crore shares of Gland Pharma, representing a 6.2% stake, were sold in a block deal worth Rs 1,815 crore on June 19. Reports suggest that Shanghai-based Fosun Pharmaceutical Group was the likely seller.

Following the block deal, shares of Gland Pharma fell by 3.5% to a low of Rs 1,776 on the NSE. Bloomberg first reported Fosun Pharma’s plans to sell its stake in Gland Pharma. According to the report, Fosun Pharma might continue selling stakes over the coming months to strengthen its balance sheet unless buyout firms step in with an offer.

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The high valuation expectations of Fosun Pharma for Gland Pharma have been a stumbling block for potential sales to private equity firms.

In a related development, Bloomberg reported that Fosun Pharma Industrial Pte. offered 8.2 million shares in Gland Pharma Ltd. in a block trade, with a floor price set at Rs 1,750 per share, a 4.9% discount to the last close. UBS acted as the placement agent for the deal.