The chase to buy Paras Pharmaceuticals has rolled the 2nd leg, with its investment banker consulting at least 5 global drugmakers to purchase a majority stake in the Indian company, a person familiar with the development told.
Morgan Stanley, the investment bank, has asked bids from the world’s biggest drugmaker Pfizer, the UK-based GlaxoSmithKline GSK, French major Sanofi Aventis, besides Japan’s Daiichi Sankyo and Taisho Pharma. It has the compell to sell private equity investors — Actis Advisors and Sequoia Capital India Advisors’ — joined 70% stake in privately-held Paras Pharma. Promoter Girish Patel and his family have the remaining 30%.
It has offered information memorandum, which is a big document provided to capable buyers, and which has the company profile, comprising financial details, assets, focus and strengths. The prevailing investors are told to be asking for about $700 million, valuing the company at $1 billion. Morgan Stanley has reached international firms as it feels that local companies might not be able to give such a high price. “A valuation of around `4,500 crore is too stiff for local players,” the same person, appealing anonymity, told.
Pfizer, Sanofi Aventis, GSK and Morgan Stanley declined to comment. Daiichi Sankyo did not respond to an email query, while Taisho Pharma executives could not be reached. Paras officials also declined to comment.
Morgan Stanley, the investment bank, has asked bids from the world’s biggest drugmaker Pfizer, the UK-based GlaxoSmithKline GSK, French major Sanofi Aventis, besides Japan’s Daiichi Sankyo and Taisho Pharma. It has the compell to sell private equity investors — Actis Advisors and Sequoia Capital India Advisors’ — joined 70% stake in privately-held Paras Pharma. Promoter Girish Patel and his family have the remaining 30%.
It has offered information memorandum, which is a big document provided to capable buyers, and which has the company profile, comprising financial details, assets, focus and strengths. The prevailing investors are told to be asking for about $700 million, valuing the company at $1 billion. Morgan Stanley has reached international firms as it feels that local companies might not be able to give such a high price. “A valuation of around `4,500 crore is too stiff for local players,” the same person, appealing anonymity, told.
Pfizer, Sanofi Aventis, GSK and Morgan Stanley declined to comment. Daiichi Sankyo did not respond to an email query, while Taisho Pharma executives could not be reached. Paras officials also declined to comment.
