Novartis
Novartis to exit listed India arm, sell 71% stake to PE consortium
Mumbai/IBNS: Swiss drugmaker Novartis AG will sell its entire 70.68 percent stake in its listed Indian arm, Novartis India Limited, to a consortium of private equity investors, media reports said.
The consortium — comprising WaveRise Investments, ChrysCapital Fund X and Two Infinity Partners — will acquire the 70.68 percent stake through a share purchase agreement.
In addition, the group has made an open offer to purchase up to 26 percent of the remaining public shareholding at Rs 860.64 per share, representing a premium of 3.6 percent over Thursday’s closing price.
Following the announcement, shares of Novartis India surged nearly 20 percent on Friday to Rs 996.5.
Novartis India primarily functions as a marketing and distribution arm, while manufacturing and research and development activities are largely handled by the global parent or other Novartis entities.
The Swiss pharmaceutical major had initiated a strategic review of its India business, including its stake in the listed arm, a couple of years ago.
Amid drug import tariff concerns during the administration of former US President Donald Trump, Novartis last year announced plans to expand its operations in the United States.
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