China’s Fosun Group has decided to acquire a lower stake of 74% in India’s Gland Pharma Ltd, which makes the transaction eligible for automatic approval. China’s Fosun Group has decided to acquire a lower stake of 74% in India’s Gland Pharma Ltd, which makes the transaction eligible for automatic approval. The lower value may reflect the higher size of the put, the higher per share price paid to the founders. Since Fosun’s stake cannot go higher under the automatic route, and the government may not approve a higher stake, an IPO becomes a feasible option for an exit. A lower stake for Fosun can be taken as a symbolic point scored but, in the end, Fosun got everything it wanted, with a slightly lower stake being the only casualty.

Source: Mint September 19, 2017 01:41 UTC