Gland Pharma investors weighing 74% stake sale to Fosun in alternative plan - (livemint.com via NewsPoints Desk)

  • According to two people familiar with the matter, Gland Pharma investors, including KKR, may sell a stake of up to 74 percent under the automatic approval route to China's Fosun International after failing to secure government approval for an 86-percent stake sale so far, reported livemint.com.

  • The new structure is being considered as an alternative in case approval for the deal, which is pending before India's Cabinet Committee of Economic Affairs (CCEA), falls through.

  • The two people said "both sides have extended the exclusivity period to conclude the deal to end of September."

  • Shanghai Fosun Pharmaceutical agreed to acquire roughly 86 percent in Gland Pharma for $1.3 billion in July 2016. The deal has been cleared by India's Foreign Investment Promotion Board and the Competition Commission of India, and was referred to the CCEA in April.

  • Last month, Bloomberg reported that the CCEA has blocked Fosun's bid, but that the companies have not been formally told about the decision.

  • Media reports since then have cited the delay in approval to a surge in border tensions between India and China, as well as concerns over the transfer of technology to Chinese companies, the news source added.

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